Correlation Between Shinil Electronics and Cloud Air
Can any of the company-specific risk be diversified away by investing in both Shinil Electronics and Cloud Air at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Shinil Electronics and Cloud Air into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shinil Electronics Co and Cloud Air CoLtd, you can compare the effects of market volatilities on Shinil Electronics and Cloud Air and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Shinil Electronics with a short position of Cloud Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shinil Electronics and Cloud Air.
Diversification Opportunities for Shinil Electronics and Cloud Air
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shinil and Cloud is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Shinil Electronics Co and Cloud Air CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cloud Air CoLtd and Shinil Electronics is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Shinil Electronics Co are associated (or correlated) with Cloud Air. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cloud Air CoLtd has no effect on the direction of Shinil Electronics i.e., Shinil Electronics and Cloud Air go up and down completely randomly.
Pair Corralation between Shinil Electronics and Cloud Air
Assuming the 90 days trading horizon Shinil Electronics Co is expected to under-perform the Cloud Air. But the stock apears to be less risky and, when comparing its historical volatility, Shinil Electronics Co is 1.39 times less risky than Cloud Air. The stock trades about -0.04 of its potential returns per unit of risk. The Cloud Air CoLtd is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 85,900 in Cloud Air CoLtd on October 30, 2024 and sell it today you would lose (400.00) from holding Cloud Air CoLtd or give up 0.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shinil Electronics Co vs. Cloud Air CoLtd
Performance |
| Timeline |
| Shinil Electronics |
| Cloud Air CoLtd |
Shinil Electronics and Cloud Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shinil Electronics and Cloud Air
The main advantage of trading using opposite Shinil Electronics and Cloud Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shinil Electronics position performs unexpectedly, Cloud Air can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Cloud Air will offset losses from the drop in Cloud Air's long position.| Shinil Electronics vs. Daewon Chemical Co | Shinil Electronics vs. LG Household Healthcare | Shinil Electronics vs. Sung Bo Chemicals | Shinil Electronics vs. Daejung Chemicals Metals |
| Cloud Air vs. Sempio Foods Co | Cloud Air vs. CKH Food Health | Cloud Air vs. ABOV Semiconductor Co | Cloud Air vs. Seoul Food Industrial |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |