Correlation Between Cloud Air and Cosmecca Korea
Can any of the company-specific risk be diversified away by investing in both Cloud Air and Cosmecca Korea 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 Cosmecca Korea 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 Cosmecca Korea Co, you can compare the effects of market volatilities on Cloud Air and Cosmecca Korea 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 Cosmecca Korea. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cloud Air and Cosmecca Korea.
Diversification Opportunities for Cloud Air and Cosmecca Korea
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Cloud and Cosmecca is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Cloud Air CoLtd and Cosmecca Korea Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cosmecca Korea 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 Cosmecca Korea. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cosmecca Korea has no effect on the direction of Cloud Air i.e., Cloud Air and Cosmecca Korea go up and down completely randomly.
Pair Corralation between Cloud Air and Cosmecca Korea
Assuming the 90 days trading horizon Cloud Air CoLtd is expected to generate 0.51 times more return on investment than Cosmecca Korea. However, Cloud Air CoLtd is 1.96 times less risky than Cosmecca Korea. It trades about 0.01 of its potential returns per unit of risk. Cosmecca Korea Co is currently generating about 0.0 per unit of risk. If you would invest 86,100 in Cloud Air CoLtd on August 28, 2024 and sell it today you would earn a total of 200.00 from holding Cloud Air CoLtd or generate 0.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.17% |
| Values | Daily Returns |
Cloud Air CoLtd vs. Cosmecca Korea Co
Performance |
| Timeline |
| Cloud Air CoLtd |
| Cosmecca Korea |
Cloud Air and Cosmecca Korea Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cloud Air and Cosmecca Korea
The main advantage of trading using opposite Cloud Air and Cosmecca Korea positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cloud Air position performs unexpectedly, Cosmecca Korea 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 Cosmecca Korea will offset losses from the drop in Cosmecca Korea's long position.| Cloud Air vs. SK Hynix | Cloud Air vs. People Technology | Cloud Air vs. SIMMTECH Co | Cloud Air vs. Haesung DS Co |
| Cosmecca Korea vs. Inzi Display CoLtd | Cosmecca Korea vs. Cloud Air CoLtd | Cosmecca Korea vs. Dongbu Insurance Co | Cosmecca Korea vs. Kakao Games Corp |
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 CEOs Directory module to screen CEOs from public companies around the world.
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