Correlation Between Cosmax Nbt and Cloud Air
Can any of the company-specific risk be diversified away by investing in both Cosmax Nbt and Cloud Air 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 Cosmax Nbt and Cloud Air into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cosmax Nbt and Cloud Air CoLtd, you can compare the effects of market volatilities on Cosmax Nbt and Cloud Air 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 Cosmax Nbt with a short position of Cloud Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cosmax Nbt and Cloud Air.
Diversification Opportunities for Cosmax Nbt and Cloud Air
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cosmax and Cloud is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Cosmax Nbt and Cloud Air CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cloud Air CoLtd and Cosmax Nbt 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 Cosmax Nbt are associated (or correlated) with Cloud Air. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cloud Air CoLtd has no effect on the direction of Cosmax Nbt i.e., Cosmax Nbt and Cloud Air go up and down completely randomly.
Pair Corralation between Cosmax Nbt and Cloud Air
Assuming the 90 days trading horizon Cosmax Nbt is expected to under-perform the Cloud Air. In addition to that, Cosmax Nbt is 1.17 times more volatile than Cloud Air CoLtd. It trades about -0.01 of its total potential returns per unit of risk. Cloud Air CoLtd is currently generating about -0.01 per unit of volatility. If you would invest 101,000 in Cloud Air CoLtd on September 3, 2024 and sell it today you would lose (17,200) from holding Cloud Air CoLtd or give up 17.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cosmax Nbt vs. Cloud Air CoLtd
Performance |
| Timeline |
| Cosmax Nbt |
| Cloud Air CoLtd |
Cosmax Nbt and Cloud Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cosmax Nbt and Cloud Air
The main advantage of trading using opposite Cosmax Nbt and Cloud Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cosmax Nbt position performs unexpectedly, Cloud Air 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 Cloud Air will offset losses from the drop in Cloud Air's long position.| Cosmax Nbt vs. LG Display | Cosmax Nbt vs. Hyundai Motor | Cosmax Nbt vs. Hyundai Motor Co | Cosmax Nbt vs. Hyundai Motor Co |
| Cloud Air vs. SK Hynix | Cloud Air vs. LX Semicon Co | Cloud Air vs. Tokai Carbon Korea | Cloud Air vs. People Technology |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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