Correlation Between Unisem M and Cloudpoint Technology
Can any of the company-specific risk be diversified away by investing in both Unisem M and Cloudpoint 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 Unisem M and Cloudpoint Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Unisem M Bhd and Cloudpoint Technology Berhad, you can compare the effects of market volatilities on Unisem M and Cloudpoint 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 Unisem M with a short position of Cloudpoint Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Unisem M and Cloudpoint Technology.
Diversification Opportunities for Unisem M and Cloudpoint Technology
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Unisem and Cloudpoint is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Unisem M Bhd and Cloudpoint Technology Berhad in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cloudpoint Technology and Unisem M 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 Unisem M Bhd are associated (or correlated) with Cloudpoint Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cloudpoint Technology has no effect on the direction of Unisem M i.e., Unisem M and Cloudpoint Technology go up and down completely randomly.
Pair Corralation between Unisem M and Cloudpoint Technology
Assuming the 90 days trading horizon Unisem M is expected to generate 6.96 times less return on investment than Cloudpoint Technology. But when comparing it to its historical volatility, Unisem M Bhd is 1.41 times less risky than Cloudpoint Technology. It trades about 0.05 of its potential returns per unit of risk. Cloudpoint Technology Berhad is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 83.00 in Cloudpoint Technology Berhad on September 19, 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 | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Unisem M Bhd vs. Cloudpoint Technology Berhad
Performance |
| Timeline |
| Unisem M Bhd |
| Cloudpoint Technology |
Unisem M and Cloudpoint Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Unisem M and Cloudpoint Technology
The main advantage of trading using opposite Unisem M and Cloudpoint Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Unisem M position performs unexpectedly, Cloudpoint 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 Cloudpoint Technology will offset losses from the drop in Cloudpoint Technology's long position.| Unisem M vs. Cloudpoint Technology Berhad | Unisem M vs. Lyc Healthcare Bhd | Unisem M vs. Cengild Medical Berhad | Unisem M vs. Nova Wellness Group |
| Cloudpoint Technology vs. Malayan Banking Bhd | Cloudpoint Technology vs. Public Bank Bhd | Cloudpoint Technology vs. Petronas Chemicals Group | Cloudpoint Technology vs. Tenaga Nasional 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |