Correlation Between Cloudpoint Technology and Cengild Medical
Can any of the company-specific risk be diversified away by investing in both Cloudpoint Technology and Cengild Medical 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 Cengild Medical 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 Cengild Medical Berhad, you can compare the effects of market volatilities on Cloudpoint Technology and Cengild Medical 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 Cengild Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cloudpoint Technology and Cengild Medical.
Diversification Opportunities for Cloudpoint Technology and Cengild Medical
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Cloudpoint and Cengild is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Cloudpoint Technology Berhad and Cengild Medical Berhad in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cengild Medical Berhad 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 Cengild Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cengild Medical Berhad has no effect on the direction of Cloudpoint Technology i.e., Cloudpoint Technology and Cengild Medical go up and down completely randomly.
Pair Corralation between Cloudpoint Technology and Cengild Medical
Assuming the 90 days trading horizon Cloudpoint Technology Berhad is expected to under-perform the Cengild Medical. But the stock apears to be less risky and, when comparing its historical volatility, Cloudpoint Technology Berhad is 1.04 times less risky than Cengild Medical. The stock trades about -0.26 of its potential returns per unit of risk. The Cengild Medical Berhad is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 27.00 in Cengild Medical Berhad on November 29, 2024 and sell it today you would earn a total of 1.00 from holding Cengild Medical Berhad or generate 3.7% 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. Cengild Medical Berhad
Performance |
| Timeline |
| Cloudpoint Technology |
| Cengild Medical Berhad |
Cloudpoint Technology and Cengild Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cloudpoint Technology and Cengild Medical
The main advantage of trading using opposite Cloudpoint Technology and Cengild Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cloudpoint Technology position performs unexpectedly, Cengild Medical 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 Cengild Medical will offset losses from the drop in Cengild Medical's long position.| Cloudpoint Technology vs. BP Plastics Holding | Cloudpoint Technology vs. Kluang Rubber | Cloudpoint Technology vs. Greatech Technology Bhd | Cloudpoint Technology vs. CPE Technology Berhad |
| Cengild Medical vs. YTL Hospitality REIT | Cengild Medical vs. Sunway Construction Group | Cengild Medical vs. CPE Technology Berhad | Cengild Medical vs. Farm Price 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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