Correlation Between Cloud Live and Markor International

Can any of the company-specific risk be diversified away by investing in both Cloud Live and Markor International 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 Live and Markor International into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Cloud Live Technology and Markor International Home, you can compare the effects of market volatilities on Cloud Live and Markor International 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 Live with a short position of Markor International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cloud Live and Markor International.

Diversification Opportunities for Cloud Live and Markor International

0.81

Correlation Coefficient

Cloud Live  Markor International

Very poor diversification

The 3 months correlation between Cloud and Markor is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Cloud Live Technology and Markor International Home in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Markor International Home and Cloud Live 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 Live Technology are associated (or correlated) with Markor International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Markor International Home has no effect on the direction of Cloud Live i.e., Cloud Live and Markor International go up and down completely randomly.

Pair Corralation between Cloud Live and Markor International

Assuming the 90 days trading horizon Cloud Live Technology is expected to under-perform the Markor International. In addition to that, Cloud Live is 1.53 times more volatile than Markor International Home. It trades about -0.26 of its total potential returns per unit of risk. Markor International Home is currently generating about -0.21 per unit of volatility. If you would invest  205.00  in Markor International Home on October 23, 2024 and sell it today you would lose (26.00) from holding Markor International Home or give up 12.68% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	100.0%
Values	Daily Returns

Cloud Live Technology  vs.  Markor International Home

Cloud Live Technology

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Cloud Live Technology has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Cloud Live is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Markor International Home

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Markor International Home are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Markor International sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Cloud Live and Markor International

The main advantage of trading using opposite Cloud Live and Markor International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cloud Live position performs unexpectedly, Markor International 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 Markor International will offset losses from the drop in Markor International's long position.

The idea behind Cloud Live Technology and Markor International Home pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.