Correlation Between Cloud Technologies and Logintrade
Can any of the company-specific risk be diversified away by investing in both Cloud Technologies and Logintrade 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 Logintrade 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 Logintrade SA, you can compare the effects of market volatilities on Cloud Technologies and Logintrade 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 Logintrade. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cloud Technologies and Logintrade.
Diversification Opportunities for Cloud Technologies and Logintrade
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Cloud and Logintrade is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Cloud Technologies SA and Logintrade SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Logintrade 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 Logintrade. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Logintrade SA has no effect on the direction of Cloud Technologies i.e., Cloud Technologies and Logintrade go up and down completely randomly.
Pair Corralation between Cloud Technologies and Logintrade
Assuming the 90 days trading horizon Cloud Technologies is expected to generate 2.68 times less return on investment than Logintrade. But when comparing it to its historical volatility, Cloud Technologies SA is 1.56 times less risky than Logintrade. It trades about 0.05 of its potential returns per unit of risk. Logintrade SA is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 120.00 in Logintrade SA on September 4, 2024 and sell it today you would earn a total of 228.00 from holding Logintrade SA or generate 190.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 74.75% |
| Values | Daily Returns |
Cloud Technologies SA vs. Logintrade SA
Performance |
| Timeline |
| Cloud Technologies |
| Logintrade SA |
Cloud Technologies and Logintrade Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cloud Technologies and Logintrade
The main advantage of trading using opposite Cloud Technologies and Logintrade positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cloud Technologies position performs unexpectedly, Logintrade 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 Logintrade will offset losses from the drop in Logintrade's long position.| Cloud Technologies vs. Asseco Business Solutions | Cloud Technologies vs. Kogeneracja SA | Cloud Technologies vs. Asseco South Eastern | Cloud Technologies vs. Movie Games SA |
| Logintrade vs. Banco Santander SA | Logintrade vs. UniCredit SpA | Logintrade vs. CEZ as | Logintrade vs. Polski Koncern Naftowy |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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