Correlation Between Cloudpoint Technology and Cosmos Technology
Can any of the company-specific risk be diversified away by investing in both Cloudpoint Technology and Cosmos 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 Cloudpoint Technology and Cosmos Technology 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 Cosmos Technology International, you can compare the effects of market volatilities on Cloudpoint Technology and Cosmos 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 Cloudpoint Technology with a short position of Cosmos Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cloudpoint Technology and Cosmos Technology.
Diversification Opportunities for Cloudpoint Technology and Cosmos Technology
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Cloudpoint and Cosmos is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Cloudpoint Technology Berhad and Cosmos Technology Internationa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cosmos Technology 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 Cosmos Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cosmos Technology has no effect on the direction of Cloudpoint Technology i.e., Cloudpoint Technology and Cosmos Technology go up and down completely randomly.
Pair Corralation between Cloudpoint Technology and Cosmos Technology
Assuming the 90 days trading horizon Cloudpoint Technology Berhad is expected to generate 0.99 times more return on investment than Cosmos Technology. However, Cloudpoint Technology Berhad is 1.01 times less risky than Cosmos Technology. It trades about -0.26 of its potential returns per unit of risk. Cosmos Technology International is currently generating about -0.32 per unit of risk. If you would invest 94.00 in Cloudpoint Technology Berhad on November 29, 2024 and sell it today you would lose (10.00) from holding Cloudpoint Technology Berhad or give up 10.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cloudpoint Technology Berhad vs. Cosmos Technology Internationa
Performance |
| Timeline |
| Cloudpoint Technology |
| Cosmos Technology |
Cloudpoint Technology and Cosmos Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cloudpoint Technology and Cosmos Technology
The main advantage of trading using opposite Cloudpoint Technology and Cosmos Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cloudpoint Technology position performs unexpectedly, Cosmos 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 Cosmos Technology will offset losses from the drop in Cosmos Technology'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 |
| Cosmos Technology vs. Coraza Integrated Technology | Cosmos Technology vs. Sapura Industrial Bhd | Cosmos Technology vs. Sports Toto Berhad | Cosmos Technology vs. Greatech Technology 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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