Correlation Between Cloud Air and CJ Seafood
Can any of the company-specific risk be diversified away by investing in both Cloud Air and CJ Seafood 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 Cloud Air and CJ Seafood into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cloud Air CoLtd and CJ Seafood Corp, you can compare the effects of market volatilities on Cloud Air and CJ Seafood 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 Cloud Air with a short position of CJ Seafood. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cloud Air and CJ Seafood.
Diversification Opportunities for Cloud Air and CJ Seafood
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Cloud and 011150 is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Cloud Air CoLtd and CJ Seafood Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CJ Seafood Corp and Cloud Air 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 Cloud Air CoLtd are associated (or correlated) with CJ Seafood. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CJ Seafood Corp has no effect on the direction of Cloud Air i.e., Cloud Air and CJ Seafood go up and down completely randomly.
Pair Corralation between Cloud Air and CJ Seafood
Assuming the 90 days trading horizon Cloud Air CoLtd is expected to generate 0.92 times more return on investment than CJ Seafood. However, Cloud Air CoLtd is 1.09 times less risky than CJ Seafood. It trades about -0.05 of its potential returns per unit of risk. CJ Seafood Corp is currently generating about -0.11 per unit of risk. If you would invest 90,400 in Cloud Air CoLtd on September 13, 2024 and sell it today you would lose (4,500) from holding Cloud Air CoLtd or give up 4.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cloud Air CoLtd vs. CJ Seafood Corp
Performance |
| Timeline |
| Cloud Air CoLtd |
| CJ Seafood Corp |
Cloud Air and CJ Seafood Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cloud Air and CJ Seafood
The main advantage of trading using opposite Cloud Air and CJ Seafood positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cloud Air position performs unexpectedly, CJ Seafood 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 CJ Seafood will offset losses from the drop in CJ Seafood's long position.| Cloud Air vs. SK Hynix | Cloud Air vs. People Technology | Cloud Air vs. Hana Materials | Cloud Air vs. SIMMTECH Co |
| CJ Seafood vs. PNC Technologies co | CJ Seafood vs. Shinhan Inverse Silver | CJ Seafood vs. Cots Technology Co | CJ Seafood vs. PH Tech Co |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Global Correlations Find global opportunities by holding instruments from different markets |