Correlation Between YX Precious and Cloudpoint Technology
Can any of the company-specific risk be diversified away by investing in both YX Precious 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 YX Precious and Cloudpoint Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between YX Precious Metals and Cloudpoint Technology Berhad, you can compare the effects of market volatilities on YX Precious 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 YX Precious with a short position of Cloudpoint Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of YX Precious and Cloudpoint Technology.
Diversification Opportunities for YX Precious and Cloudpoint Technology
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between 0250 and Cloudpoint is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding YX Precious Metals and Cloudpoint Technology Berhad in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cloudpoint Technology and YX Precious 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 YX Precious Metals 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 YX Precious i.e., YX Precious and Cloudpoint Technology go up and down completely randomly.
Pair Corralation between YX Precious and Cloudpoint Technology
Assuming the 90 days trading horizon YX Precious is expected to generate 1.55 times less return on investment than Cloudpoint Technology. But when comparing it to its historical volatility, YX Precious Metals is 2.43 times less risky than Cloudpoint Technology. It trades about 0.13 of its potential returns per unit of risk. Cloudpoint Technology Berhad is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 94.00 in Cloudpoint Technology Berhad on November 8, 2024 and sell it today you would earn a total of 5.00 from holding Cloudpoint Technology Berhad or generate 5.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
YX Precious Metals vs. Cloudpoint Technology Berhad
Performance |
| Timeline |
| YX Precious Metals |
| Cloudpoint Technology |
YX Precious and Cloudpoint Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YX Precious and Cloudpoint Technology
The main advantage of trading using opposite YX Precious and Cloudpoint Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YX Precious 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.| YX Precious vs. Malayan Banking Bhd | YX Precious vs. Public Bank Bhd | YX Precious vs. Petronas Chemicals Group | YX Precious vs. Tenaga Nasional Bhd |
| Cloudpoint Technology vs. Melewar Industrial Group | Cloudpoint Technology vs. Nova Wellness Group | Cloudpoint Technology vs. Mercury Industries Bhd | Cloudpoint Technology vs. DC HEALTHCARE 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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