Correlation Between Okins Electronics and Cloud Air
Can any of the company-specific risk be diversified away by investing in both Okins Electronics 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 Okins Electronics and Cloud Air into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Okins Electronics Co and Cloud Air CoLtd, you can compare the effects of market volatilities on Okins Electronics 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 Okins Electronics with a short position of Cloud Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of Okins Electronics and Cloud Air.
Diversification Opportunities for Okins Electronics and Cloud Air
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Okins and Cloud is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Okins Electronics Co 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 Okins Electronics 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 Okins Electronics Co 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 Okins Electronics i.e., Okins Electronics and Cloud Air go up and down completely randomly.
Pair Corralation between Okins Electronics and Cloud Air
Assuming the 90 days trading horizon Okins Electronics Co is expected to under-perform the Cloud Air. In addition to that, Okins Electronics is 1.49 times more volatile than Cloud Air CoLtd. It trades about -0.11 of its total potential returns per unit of risk. Cloud Air CoLtd is currently generating about 0.04 per unit of volatility. If you would invest 88,400 in Cloud Air CoLtd on September 25, 2024 and sell it today you would earn a total of 2,400 from holding Cloud Air CoLtd or generate 2.71% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Okins Electronics Co vs. Cloud Air CoLtd
Performance |
Timeline |
Okins Electronics |
Cloud Air CoLtd |
Okins Electronics and Cloud Air Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Okins Electronics and Cloud Air
The main advantage of trading using opposite Okins Electronics and Cloud Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Okins Electronics 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.Okins Electronics vs. Dongsin Engineering Construction | Okins Electronics vs. Doosan Fuel Cell | Okins Electronics vs. Daishin Balance 1 | Okins Electronics vs. Total Soft Bank |
Cloud Air vs. BIT Computer Co | Cloud Air vs. Inzi Display CoLtd | Cloud Air vs. Okins Electronics Co | Cloud Air vs. Korea Computer |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
Bonds Directory Find actively traded corporate debentures issued by US companies | |
Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
Equity Valuation Check real value of public entities based on technical and fundamental data |