Correlation Between Cloud Technologies and Grupa KTY
Can any of the company-specific risk be diversified away by investing in both Cloud Technologies and Grupa KTY 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 Cloud Technologies and Grupa KTY into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cloud Technologies SA and Grupa KTY SA, you can compare the effects of market volatilities on Cloud Technologies and Grupa KTY 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 Cloud Technologies with a short position of Grupa KTY. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cloud Technologies and Grupa KTY.
Diversification Opportunities for Cloud Technologies and Grupa KTY
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Cloud and Grupa is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Cloud Technologies SA and Grupa KTY SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grupa KTY SA and Cloud Technologies 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 Cloud Technologies SA are associated (or correlated) with Grupa KTY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grupa KTY SA has no effect on the direction of Cloud Technologies i.e., Cloud Technologies and Grupa KTY go up and down completely randomly.
Pair Corralation between Cloud Technologies and Grupa KTY
Assuming the 90 days trading horizon Cloud Technologies is expected to generate 1.51 times less return on investment than Grupa KTY. In addition to that, Cloud Technologies is 1.94 times more volatile than Grupa KTY SA. It trades about 0.03 of its total potential returns per unit of risk. Grupa KTY SA is currently generating about 0.08 per unit of volatility. If you would invest 38,127 in Grupa KTY SA on September 14, 2024 and sell it today you would earn a total of 32,923 from holding Grupa KTY SA or generate 86.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cloud Technologies SA vs. Grupa KTY SA
Performance |
| Timeline |
| Cloud Technologies |
| Grupa KTY SA |
Cloud Technologies and Grupa KTY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cloud Technologies and Grupa KTY
The main advantage of trading using opposite Cloud Technologies and Grupa KTY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cloud Technologies position performs unexpectedly, Grupa KTY 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 Grupa KTY will offset losses from the drop in Grupa KTY's long position.| Cloud Technologies vs. UF Games SA | Cloud Technologies vs. Mlk Foods Public | Cloud Technologies vs. GreenX Metals | Cloud Technologies vs. Drago entertainment SA |
| Grupa KTY vs. Inter Cars SA | Grupa KTY vs. PZ Cormay SA | Grupa KTY vs. Cloud Technologies SA | Grupa KTY vs. Mlk Foods Public |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |