Correlation Between Cloudpoint Technology and Supercomnet Technologies
Can any of the company-specific risk be diversified away by investing in both Cloudpoint Technology and Supercomnet Technologies 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 Cloudpoint Technology and Supercomnet Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cloudpoint Technology Berhad and Supercomnet Technologies Bhd, you can compare the effects of market volatilities on Cloudpoint Technology and Supercomnet Technologies 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 Cloudpoint Technology with a short position of Supercomnet Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cloudpoint Technology and Supercomnet Technologies.
Diversification Opportunities for Cloudpoint Technology and Supercomnet Technologies
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Cloudpoint and Supercomnet is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Cloudpoint Technology Berhad and Supercomnet Technologies Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Supercomnet Technologies and Cloudpoint Technology 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 Cloudpoint Technology Berhad are associated (or correlated) with Supercomnet Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Supercomnet Technologies has no effect on the direction of Cloudpoint Technology i.e., Cloudpoint Technology and Supercomnet Technologies go up and down completely randomly.
Pair Corralation between Cloudpoint Technology and Supercomnet Technologies
Assuming the 90 days trading horizon Cloudpoint Technology Berhad is expected to generate 1.81 times more return on investment than Supercomnet Technologies. However, Cloudpoint Technology is 1.81 times more volatile than Supercomnet Technologies Bhd. It trades about 0.02 of its potential returns per unit of risk. Supercomnet Technologies Bhd is currently generating about -0.11 per unit of risk. If you would invest 83.00 in Cloudpoint Technology Berhad on September 3, 2024 and sell it today you would earn a total of 1.00 from holding Cloudpoint Technology Berhad or generate 1.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cloudpoint Technology Berhad vs. Supercomnet Technologies Bhd
Performance |
| Timeline |
| Cloudpoint Technology |
| Supercomnet Technologies |
Cloudpoint Technology and Supercomnet Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cloudpoint Technology and Supercomnet Technologies
The main advantage of trading using opposite Cloudpoint Technology and Supercomnet Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cloudpoint Technology position performs unexpectedly, Supercomnet Technologies 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 Supercomnet Technologies will offset losses from the drop in Supercomnet Technologies' long position.| Cloudpoint Technology vs. Senheng New Retail | Cloudpoint Technology vs. MClean Technologies Bhd | Cloudpoint Technology vs. Icon Offshore Bhd | Cloudpoint Technology vs. MyTech Group Bhd |
| Supercomnet Technologies vs. Binasat Communications Bhd | Supercomnet Technologies vs. Awanbiru Technology Bhd | Supercomnet Technologies vs. Tex Cycle Technology | Supercomnet Technologies vs. Homeritz 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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