Correlation Between SB Technology and CLPS

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

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

Diversification Opportunities for SB Technology and CLPS

0.29

Correlation Coefficient

SB Technology  CLPS

Modest diversification

The 3 months correlation between SFBTF and CLPS is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding SB Technology Corp and CLPS Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CLPS Inc and SB Technology 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 SB Technology Corp 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 SB Technology i.e., SB Technology and CLPS go up and down completely randomly.

Pair Corralation between SB Technology and CLPS

If you would invest  114.00  in CLPS Inc on August 30, 2024 and sell it today you would lose (3.00) from holding CLPS Inc or give up 2.63% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	1.56%
Values	Daily Returns

SB Technology Corp  vs.  CLPS Inc

SB Technology Corp

Risk-Adjusted Performance

0 of 100

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.

CLPS Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days CLPS Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, CLPS is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with SB Technology and CLPS

The main advantage of trading using opposite SB Technology and CLPS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SB Technology 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.

The idea behind SB Technology Corp and CLPS Inc 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..