Correlation Between Cloudpoint Technology and Telekom Malaysia
Can any of the company-specific risk be diversified away by investing in both Cloudpoint Technology and Telekom Malaysia 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 Telekom Malaysia 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 Telekom Malaysia Bhd, you can compare the effects of market volatilities on Cloudpoint Technology and Telekom Malaysia 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 Telekom Malaysia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cloudpoint Technology and Telekom Malaysia.
Diversification Opportunities for Cloudpoint Technology and Telekom Malaysia
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cloudpoint and Telekom is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Cloudpoint Technology Berhad and Telekom Malaysia Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Telekom Malaysia 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 Telekom Malaysia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Telekom Malaysia Bhd has no effect on the direction of Cloudpoint Technology i.e., Cloudpoint Technology and Telekom Malaysia go up and down completely randomly.
Pair Corralation between Cloudpoint Technology and Telekom Malaysia
Assuming the 90 days trading horizon Cloudpoint Technology Berhad is expected to generate 2.37 times more return on investment than Telekom Malaysia. However, Cloudpoint Technology is 2.37 times more volatile than Telekom Malaysia Bhd. It trades about 0.08 of its potential returns per unit of risk. Telekom Malaysia Bhd is currently generating about 0.1 per unit of risk. If you would invest 55.00 in Cloudpoint Technology Berhad on September 15, 2024 and sell it today you would earn a total of 37.00 from holding Cloudpoint Technology Berhad or generate 67.27% 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. Telekom Malaysia Bhd
Performance |
| Timeline |
| Cloudpoint Technology |
| Telekom Malaysia Bhd |
Cloudpoint Technology and Telekom Malaysia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cloudpoint Technology and Telekom Malaysia
The main advantage of trading using opposite Cloudpoint Technology and Telekom Malaysia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cloudpoint Technology position performs unexpectedly, Telekom Malaysia 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 Telekom Malaysia will offset losses from the drop in Telekom Malaysia's long position.| Cloudpoint Technology vs. Greatech Technology Bhd | Cloudpoint Technology vs. Melewar Industrial Group | Cloudpoint Technology vs. PIE Industrial Bhd | Cloudpoint Technology vs. Rubberex M |
| Telekom Malaysia vs. Central Industrial Corp | Telekom Malaysia vs. Farm Price Holdings | Telekom Malaysia vs. Awanbiru Technology Bhd | Telekom Malaysia vs. Press Metal 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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