Correlation Between Rubberex M and Cloudpoint Technology
Can any of the company-specific risk be diversified away by investing in both Rubberex 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 Rubberex 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 Rubberex M and Cloudpoint Technology Berhad, you can compare the effects of market volatilities on Rubberex 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 Rubberex M with a short position of Cloudpoint Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rubberex M and Cloudpoint Technology.
Diversification Opportunities for Rubberex M and Cloudpoint Technology
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Rubberex and Cloudpoint is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Rubberex 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 Rubberex 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 Rubberex 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 Rubberex M i.e., Rubberex M and Cloudpoint Technology go up and down completely randomly.
Pair Corralation between Rubberex M and Cloudpoint Technology
Assuming the 90 days trading horizon Rubberex M is expected to under-perform the Cloudpoint Technology. But the stock apears to be less risky and, when comparing its historical volatility, Rubberex M is 1.17 times less risky than Cloudpoint Technology. The stock trades about -0.07 of its potential returns per unit of risk. The Cloudpoint Technology Berhad is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 95.00 in Cloudpoint Technology Berhad on November 3, 2024 and sell it today you would lose (2.00) from holding Cloudpoint Technology Berhad or give up 2.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rubberex M vs. Cloudpoint Technology Berhad
Performance |
| Timeline |
| Rubberex M |
| Cloudpoint Technology |
Rubberex M and Cloudpoint Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rubberex M and Cloudpoint Technology
The main advantage of trading using opposite Rubberex M and Cloudpoint Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rubberex 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.| Rubberex M vs. Binasat Communications Bhd | Rubberex M vs. Computer Forms Bhd | Rubberex M vs. Choo Bee Metal | Rubberex M vs. Press Metal Bhd |
| Cloudpoint Technology vs. Computer Forms Bhd | Cloudpoint Technology vs. TAS Offshore Bhd | Cloudpoint Technology vs. SSF Home Group | Cloudpoint Technology vs. Choo Bee Metal |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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