Correlation Between EA Technique and Cloudpoint Technology
Can any of the company-specific risk be diversified away by investing in both EA Technique 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 EA Technique and Cloudpoint Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EA Technique M and Cloudpoint Technology Berhad, you can compare the effects of market volatilities on EA Technique 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 EA Technique with a short position of Cloudpoint Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of EA Technique and Cloudpoint Technology.
Diversification Opportunities for EA Technique and Cloudpoint Technology
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between 5259 and Cloudpoint is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding EA Technique M and Cloudpoint Technology Berhad in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cloudpoint Technology and EA Technique 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 EA Technique M 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 EA Technique i.e., EA Technique and Cloudpoint Technology go up and down completely randomly.
Pair Corralation between EA Technique and Cloudpoint Technology
Assuming the 90 days trading horizon EA Technique is expected to generate 43.79 times less return on investment than Cloudpoint Technology. But when comparing it to its historical volatility, EA Technique M is 1.35 times less risky than Cloudpoint Technology. It trades about 0.01 of its potential returns per unit of risk. Cloudpoint Technology Berhad is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 82.00 in Cloudpoint Technology Berhad on September 13, 2024 and sell it today you would earn a total of 8.00 from holding Cloudpoint Technology Berhad or generate 9.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
EA Technique M vs. Cloudpoint Technology Berhad
Performance |
| Timeline |
| EA Technique M |
| Cloudpoint Technology |
EA Technique and Cloudpoint Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EA Technique and Cloudpoint Technology
The main advantage of trading using opposite EA Technique and Cloudpoint Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EA Technique 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.| EA Technique vs. Cloudpoint Technology Berhad | EA Technique vs. Globetronics Tech Bhd | EA Technique vs. PIE Industrial Bhd | EA Technique vs. Central Industrial Corp |
| 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 Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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