Correlation Between K One and Cloudpoint Technology
Can any of the company-specific risk be diversified away by investing in both K One and Cloudpoint Technology 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 K One and Cloudpoint Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between K One Technology Bhd and Cloudpoint Technology Berhad, you can compare the effects of market volatilities on K One and Cloudpoint Technology 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 K One with a short position of Cloudpoint Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of K One and Cloudpoint Technology.
Diversification Opportunities for K One and Cloudpoint Technology
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between 0111 and Cloudpoint is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding K One Technology Bhd and Cloudpoint Technology Berhad in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cloudpoint Technology and K One 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 K One Technology Bhd are associated (or correlated) with Cloudpoint Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cloudpoint Technology has no effect on the direction of K One i.e., K One and Cloudpoint Technology go up and down completely randomly.
Pair Corralation between K One and Cloudpoint Technology
Assuming the 90 days trading horizon K One Technology Bhd is expected to generate 1.9 times more return on investment than Cloudpoint Technology. However, K One is 1.9 times more volatile than Cloudpoint Technology Berhad. It trades about -0.05 of its potential returns per unit of risk. Cloudpoint Technology Berhad is currently generating about -0.17 per unit of risk. If you would invest 16.00 in K One Technology Bhd on November 28, 2024 and sell it today you would lose (1.00) from holding K One Technology Bhd or give up 6.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
K One Technology Bhd vs. Cloudpoint Technology Berhad
Performance |
| Timeline |
| K One Technology |
| Cloudpoint Technology |
K One and Cloudpoint Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with K One and Cloudpoint Technology
The main advantage of trading using opposite K One and Cloudpoint Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if K One position performs unexpectedly, Cloudpoint Technology 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 Cloudpoint Technology will offset losses from the drop in Cloudpoint Technology's long position.| K One vs. Al Aqar Healthcare | K One vs. Mercury Industries Bhd | K One vs. IHH Healthcare Bhd | K One vs. PIE Industrial Bhd |
| Cloudpoint Technology vs. Sunway Construction Group | Cloudpoint Technology vs. Malaysia Steel Works | Cloudpoint Technology vs. Cosmos Technology International | Cloudpoint Technology vs. Impiana Hotels Bhd |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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