Correlation Between MCloud Technologies and Kaspien Holdings
Can any of the company-specific risk be diversified away by investing in both MCloud Technologies and Kaspien Holdings 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 MCloud Technologies and Kaspien Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MCloud Technologies Corp and Kaspien Holdings, you can compare the effects of market volatilities on MCloud Technologies and Kaspien Holdings 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 MCloud Technologies with a short position of Kaspien Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of MCloud Technologies and Kaspien Holdings.
Diversification Opportunities for MCloud Technologies and Kaspien Holdings
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between MCloud and Kaspien is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding MCloud Technologies Corp and Kaspien Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kaspien Holdings and MCloud 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 MCloud Technologies Corp are associated (or correlated) with Kaspien Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kaspien Holdings has no effect on the direction of MCloud Technologies i.e., MCloud Technologies and Kaspien Holdings go up and down completely randomly.
Pair Corralation between MCloud Technologies and Kaspien Holdings
Given the investment horizon of 90 days MCloud Technologies Corp is expected to generate 0.95 times more return on investment than Kaspien Holdings. However, MCloud Technologies Corp is 1.05 times less risky than Kaspien Holdings. It trades about -0.02 of its potential returns per unit of risk. Kaspien Holdings is currently generating about -0.03 per unit of risk. If you would invest 110.00 in MCloud Technologies Corp on August 27, 2024 and sell it today you would lose (75.00) from holding MCloud Technologies Corp or give up 68.18% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 84.81% |
| Values | Daily Returns |
MCloud Technologies Corp vs. Kaspien Holdings
Performance |
| Timeline |
| MCloud Technologies Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Kaspien Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
MCloud Technologies and Kaspien Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MCloud Technologies and Kaspien Holdings
The main advantage of trading using opposite MCloud Technologies and Kaspien Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MCloud Technologies position performs unexpectedly, Kaspien Holdings 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 Kaspien Holdings will offset losses from the drop in Kaspien Holdings' long position.| MCloud Technologies vs. Infobird Co | MCloud Technologies vs. HeartCore Enterprises | MCloud Technologies vs. Beamr Imaging Ltd | MCloud Technologies vs. Trust Stamp |
| Kaspien Holdings vs. Quoin Pharmaceuticals Ltd | Kaspien Holdings vs. Intelligent Living Application | Kaspien Holdings vs. Revelation Biosciences | Kaspien Holdings vs. Virax Biolabs Group |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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