Correlation Between Cloudpoint Technology and YX Precious
Can any of the company-specific risk be diversified away by investing in both Cloudpoint Technology and YX Precious 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 YX Precious 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 YX Precious Metals, you can compare the effects of market volatilities on Cloudpoint Technology and YX Precious 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 YX Precious. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cloudpoint Technology and YX Precious.
Diversification Opportunities for Cloudpoint Technology and YX Precious
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cloudpoint and 0250 is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Cloudpoint Technology Berhad and YX Precious Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YX Precious Metals 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 YX Precious. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of YX Precious Metals has no effect on the direction of Cloudpoint Technology i.e., Cloudpoint Technology and YX Precious go up and down completely randomly.
Pair Corralation between Cloudpoint Technology and YX Precious
Assuming the 90 days trading horizon Cloudpoint Technology Berhad is expected to generate 1.33 times more return on investment than YX Precious. However, Cloudpoint Technology is 1.33 times more volatile than YX Precious Metals. It trades about 0.07 of its potential returns per unit of risk. YX Precious Metals is currently generating about 0.0 per unit of risk. If you would invest 49.00 in Cloudpoint Technology Berhad on September 2, 2024 and sell it today you would earn a total of 35.00 from holding Cloudpoint Technology Berhad or generate 71.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cloudpoint Technology Berhad vs. YX Precious Metals
Performance |
| Timeline |
| Cloudpoint Technology |
| YX Precious Metals |
Cloudpoint Technology and YX Precious Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cloudpoint Technology and YX Precious
The main advantage of trading using opposite Cloudpoint Technology and YX Precious positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cloudpoint Technology position performs unexpectedly, YX Precious 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 YX Precious will offset losses from the drop in YX Precious' long position.| Cloudpoint Technology vs. Berjaya Food Bhd | Cloudpoint Technology vs. Senheng New Retail | Cloudpoint Technology vs. Apollo Food Holdings | Cloudpoint Technology vs. Radiant Globaltech Bhd |
| YX Precious vs. Malayan Banking Bhd | YX Precious vs. Public Bank Bhd | YX Precious vs. Petronas Chemicals Group | YX Precious vs. Tenaga Nasional 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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