Correlation Between High Wire and CLPS
Can any of the company-specific risk be diversified away by investing in both High Wire and CLPS 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 High Wire and CLPS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between High Wire Networks and CLPS Inc, you can compare the effects of market volatilities on High Wire and CLPS 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 High Wire with a short position of CLPS. Check out your portfolio center. Please also check ongoing floating volatility patterns of High Wire and CLPS.
Diversification Opportunities for High Wire and CLPS
Excellent diversification
The 3 months correlation between High and CLPS is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding High Wire Networks and CLPS Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CLPS Inc and High Wire 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 High Wire Networks are associated (or correlated) with CLPS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CLPS Inc has no effect on the direction of High Wire i.e., High Wire and CLPS go up and down completely randomly.
Pair Corralation between High Wire and CLPS
Given the investment horizon of 90 days High Wire is expected to generate 1.21 times less return on investment than CLPS. In addition to that, High Wire is 2.61 times more volatile than CLPS Inc. It trades about 0.01 of its total potential returns per unit of risk. CLPS Inc is currently generating about 0.03 per unit of volatility. If you would invest 114.00 in CLPS Inc on November 19, 2024 and sell it today you would earn a total of 19.00 from holding CLPS Inc or generate 16.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
High Wire Networks vs. CLPS Inc
Performance |
| Timeline |
| High Wire Networks |
| CLPS Inc |
High Wire and CLPS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with High Wire and CLPS
The main advantage of trading using opposite High Wire and CLPS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if High Wire position performs unexpectedly, CLPS 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 CLPS will offset losses from the drop in CLPS's long position.| High Wire vs. Innodata | High Wire vs. Xalles Holdings | High Wire vs. 9F Inc | High Wire vs. Converge Technology Solutions |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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