Correlation Between Cloud Air and Haitai Confectionery
Can any of the company-specific risk be diversified away by investing in both Cloud Air and Haitai Confectionery 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 Haitai Confectionery 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 Haitai Confectionery Foods, you can compare the effects of market volatilities on Cloud Air and Haitai Confectionery 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 Haitai Confectionery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cloud Air and Haitai Confectionery.
Diversification Opportunities for Cloud Air and Haitai Confectionery
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Cloud and Haitai is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Cloud Air CoLtd and Haitai Confectionery Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haitai Confectionery 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 Haitai Confectionery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Haitai Confectionery has no effect on the direction of Cloud Air i.e., Cloud Air and Haitai Confectionery go up and down completely randomly.
Pair Corralation between Cloud Air and Haitai Confectionery
Assuming the 90 days trading horizon Cloud Air CoLtd is expected to under-perform the Haitai Confectionery. But the stock apears to be less risky and, when comparing its historical volatility, Cloud Air CoLtd is 1.24 times less risky than Haitai Confectionery. The stock trades about -0.04 of its potential returns per unit of risk. The Haitai Confectionery Foods is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 581,000 in Haitai Confectionery Foods on September 12, 2024 and sell it today you would earn a total of 16,000 from holding Haitai Confectionery Foods or generate 2.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cloud Air CoLtd vs. Haitai Confectionery Foods
Performance |
| Timeline |
| Cloud Air CoLtd |
| Haitai Confectionery |
Cloud Air and Haitai Confectionery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cloud Air and Haitai Confectionery
The main advantage of trading using opposite Cloud Air and Haitai Confectionery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cloud Air position performs unexpectedly, Haitai Confectionery 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 Haitai Confectionery will offset losses from the drop in Haitai Confectionery's long position.| Cloud Air vs. SK Hynix | Cloud Air vs. People Technology | Cloud Air vs. Hana Materials | Cloud Air vs. SIMMTECH Co |
| Haitai Confectionery vs. Samsung Electronics Co | Haitai Confectionery vs. Samsung Electronics Co | Haitai Confectionery vs. SK Hynix | Haitai Confectionery vs. POSCO Holdings |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |