Correlation Between Cloud Air and Humax Holdings
Can any of the company-specific risk be diversified away by investing in both Cloud Air and Humax Holdings 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 Humax Holdings 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 Humax Holdings Co, you can compare the effects of market volatilities on Cloud Air and Humax Holdings 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 Humax Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cloud Air and Humax Holdings.
Diversification Opportunities for Cloud Air and Humax Holdings
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Cloud and Humax is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Cloud Air CoLtd and Humax Holdings Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Humax Holdings 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 Humax Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Humax Holdings has no effect on the direction of Cloud Air i.e., Cloud Air and Humax Holdings go up and down completely randomly.
Pair Corralation between Cloud Air and Humax Holdings
Assuming the 90 days trading horizon Cloud Air CoLtd is expected to generate 0.54 times more return on investment than Humax Holdings. However, Cloud Air CoLtd is 1.86 times less risky than Humax Holdings. It trades about -0.02 of its potential returns per unit of risk. Humax Holdings Co is currently generating about -0.45 per unit of risk. If you would invest 84,400 in Cloud Air CoLtd on September 13, 2024 and sell it today you would lose (1,300) from holding Cloud Air CoLtd or give up 1.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Cloud Air CoLtd vs. Humax Holdings Co
Performance |
| Timeline |
| Cloud Air CoLtd |
| Humax Holdings |
Cloud Air and Humax Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cloud Air and Humax Holdings
The main advantage of trading using opposite Cloud Air and Humax Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cloud Air position performs unexpectedly, Humax Holdings 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 Humax Holdings will offset losses from the drop in Humax Holdings' long position.| Cloud Air vs. SK Hynix | Cloud Air vs. People Technology | Cloud Air vs. Hana Materials | Cloud Air vs. SIMMTECH Co |
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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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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