Correlation Between Cloudpoint Technology and Apex Healthcare
Can any of the company-specific risk be diversified away by investing in both Cloudpoint Technology and Apex Healthcare 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 Apex Healthcare 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 Apex Healthcare Bhd, you can compare the effects of market volatilities on Cloudpoint Technology and Apex Healthcare 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 Apex Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cloudpoint Technology and Apex Healthcare.
Diversification Opportunities for Cloudpoint Technology and Apex Healthcare
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Cloudpoint and Apex is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Cloudpoint Technology Berhad and Apex Healthcare Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apex Healthcare 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 Apex Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apex Healthcare Bhd has no effect on the direction of Cloudpoint Technology i.e., Cloudpoint Technology and Apex Healthcare go up and down completely randomly.
Pair Corralation between Cloudpoint Technology and Apex Healthcare
Assuming the 90 days trading horizon Cloudpoint Technology Berhad is expected to generate 1.77 times more return on investment than Apex Healthcare. However, Cloudpoint Technology is 1.77 times more volatile than Apex Healthcare Bhd. It trades about 0.25 of its potential returns per unit of risk. Apex Healthcare Bhd is currently generating about -0.03 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 Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cloudpoint Technology Berhad vs. Apex Healthcare Bhd
Performance |
| Timeline |
| Cloudpoint Technology |
| Apex Healthcare Bhd |
Cloudpoint Technology and Apex Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cloudpoint Technology and Apex Healthcare
The main advantage of trading using opposite Cloudpoint Technology and Apex Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cloudpoint Technology position performs unexpectedly, Apex Healthcare 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 Apex Healthcare will offset losses from the drop in Apex Healthcare'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 |
| Apex Healthcare vs. Duopharma Biotech Bhd | Apex Healthcare vs. Al Aqar Healthcare | Apex Healthcare vs. PMB Technology Bhd | Apex Healthcare vs. Digistar 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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