Correlation Between CLPS and SB Technology

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

By analyzing existing cross correlation between CLPS Inc and SB Technology Corp, you can compare the effects of market volatilities on CLPS and SB Technology 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 CLPS with a short position of SB Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of CLPS and SB Technology.

Diversification Opportunities for CLPS and SB Technology

0.0

Correlation Coefficient

CLPS  SB Technology

Pay attention - limited upside

The 3 months correlation between CLPS and SFBTF is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CLPS Inc and SB Technology Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SB Technology Corp and CLPS 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 CLPS Inc are associated (or correlated) with SB Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SB Technology Corp has no effect on the direction of CLPS i.e., CLPS and SB Technology go up and down completely randomly.

Pair Corralation between CLPS and SB Technology

If you would invest  111.00  in CLPS Inc on November 28, 2024 and sell it today you would earn a total of  5.00  from holding CLPS Inc or generate 4.5% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

CLPS Inc  vs.  SB Technology Corp

CLPS Inc

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in CLPS Inc are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, CLPS may actually be approaching a critical reversion point that can send shares even higher in March 2025.

SB Technology Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days SB Technology Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, SB Technology is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with CLPS and SB Technology

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

The idea behind CLPS Inc and SB Technology Corp 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.