Correlation Between Cloud Air and Jeong Moon
Can any of the company-specific risk be diversified away by investing in both Cloud Air and Jeong Moon 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 Jeong Moon 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 Jeong Moon Information, you can compare the effects of market volatilities on Cloud Air and Jeong Moon 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 Jeong Moon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cloud Air and Jeong Moon.
Diversification Opportunities for Cloud Air and Jeong Moon
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cloud and Jeong is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Cloud Air CoLtd and Jeong Moon Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jeong Moon Information 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 Jeong Moon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jeong Moon Information has no effect on the direction of Cloud Air i.e., Cloud Air and Jeong Moon go up and down completely randomly.
Pair Corralation between Cloud Air and Jeong Moon
Assuming the 90 days trading horizon Cloud Air CoLtd is expected to generate 1.04 times more return on investment than Jeong Moon. However, Cloud Air is 1.04 times more volatile than Jeong Moon Information. It trades about 0.0 of its potential returns per unit of risk. Jeong Moon Information is currently generating about -0.09 per unit of risk. If you would invest 86,600 in Cloud Air CoLtd on August 28, 2024 and sell it today you would lose (300.00) from holding Cloud Air CoLtd or give up 0.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cloud Air CoLtd vs. Jeong Moon Information
Performance |
| Timeline |
| Cloud Air CoLtd |
| Jeong Moon Information |
Cloud Air and Jeong Moon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cloud Air and Jeong Moon
The main advantage of trading using opposite Cloud Air and Jeong Moon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cloud Air position performs unexpectedly, Jeong Moon 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 Jeong Moon will offset losses from the drop in Jeong Moon's long position.| Cloud Air vs. SK Hynix | Cloud Air vs. People Technology | Cloud Air vs. SIMMTECH Co | Cloud Air vs. Haesung DS Co |
| Jeong Moon vs. Korea Real Estate | Jeong Moon vs. Korea Ratings Co | Jeong Moon vs. IQuest Co | Jeong Moon vs. Wonbang 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |