Correlation Between Cloudpoint Technology and OSK Holdings
Can any of the company-specific risk be diversified away by investing in both Cloudpoint Technology and OSK Holdings 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 OSK Holdings 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 OSK Holdings Bhd, you can compare the effects of market volatilities on Cloudpoint Technology and OSK Holdings 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 OSK Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cloudpoint Technology and OSK Holdings.
Diversification Opportunities for Cloudpoint Technology and OSK Holdings
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cloudpoint and OSK is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Cloudpoint Technology Berhad and OSK Holdings Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OSK Holdings 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 OSK Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OSK Holdings Bhd has no effect on the direction of Cloudpoint Technology i.e., Cloudpoint Technology and OSK Holdings go up and down completely randomly.
Pair Corralation between Cloudpoint Technology and OSK Holdings
Assuming the 90 days trading horizon Cloudpoint Technology Berhad is expected to generate 2.83 times more return on investment than OSK Holdings. However, Cloudpoint Technology is 2.83 times more volatile than OSK Holdings Bhd. It trades about 0.25 of its potential returns per unit of risk. OSK Holdings Bhd is currently generating about 0.7 per unit of risk. If you would invest 83.00 in Cloudpoint Technology Berhad on September 15, 2024 and sell it today you would earn a total of 9.00 from holding Cloudpoint Technology Berhad or generate 10.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Cloudpoint Technology Berhad vs. OSK Holdings Bhd
Performance |
| Timeline |
| Cloudpoint Technology |
| OSK Holdings Bhd |
Cloudpoint Technology and OSK Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cloudpoint Technology and OSK Holdings
The main advantage of trading using opposite Cloudpoint Technology and OSK Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cloudpoint Technology position performs unexpectedly, OSK Holdings 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 OSK Holdings will offset losses from the drop in OSK Holdings' 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 |
| OSK Holdings vs. Cloudpoint Technology Berhad | OSK Holdings vs. Kobay Tech Bhd | OSK Holdings vs. Cengild Medical Berhad | OSK Holdings vs. MClean Technologies 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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