Correlation Between Cloudpoint Technology and MISC Bhd
Can any of the company-specific risk be diversified away by investing in both Cloudpoint Technology and MISC Bhd 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 MISC Bhd 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 MISC Bhd, you can compare the effects of market volatilities on Cloudpoint Technology and MISC Bhd 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 MISC Bhd. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cloudpoint Technology and MISC Bhd.
Diversification Opportunities for Cloudpoint Technology and MISC Bhd
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cloudpoint and MISC is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Cloudpoint Technology Berhad and MISC Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MISC Bhd 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 MISC Bhd. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MISC Bhd has no effect on the direction of Cloudpoint Technology i.e., Cloudpoint Technology and MISC Bhd go up and down completely randomly.
Pair Corralation between Cloudpoint Technology and MISC Bhd
Assuming the 90 days trading horizon Cloudpoint Technology Berhad is expected to generate 1.95 times more return on investment than MISC Bhd. However, Cloudpoint Technology is 1.95 times more volatile than MISC Bhd. It trades about 0.13 of its potential returns per unit of risk. MISC Bhd is currently generating about 0.03 per unit of risk. If you would invest 79.00 in Cloudpoint Technology Berhad on August 28, 2024 and sell it today you would earn a total of 5.00 from holding Cloudpoint Technology Berhad or generate 6.33% 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. MISC Bhd
Performance |
| Timeline |
| Cloudpoint Technology |
| MISC Bhd |
Cloudpoint Technology and MISC Bhd Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cloudpoint Technology and MISC Bhd
The main advantage of trading using opposite Cloudpoint Technology and MISC Bhd positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cloudpoint Technology position performs unexpectedly, MISC Bhd 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 MISC Bhd will offset losses from the drop in MISC Bhd's long position.| Cloudpoint Technology vs. Malayan Banking Bhd | Cloudpoint Technology vs. Public Bank Bhd | Cloudpoint Technology vs. Petronas Chemicals Group | Cloudpoint Technology vs. Tenaga Nasional Bhd |
| MISC Bhd vs. Lysaght Galvanized Steel | MISC Bhd vs. HeiTech Padu Bhd | MISC Bhd vs. Digistar Bhd | MISC Bhd vs. Swift Haulage 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |