Correlation Between Usio and CLPS

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

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

Diversification Opportunities for Usio and CLPS

-0.77

Correlation Coefficient

Usio  CLPS

Pay attention - limited upside

The 3 months correlation between Usio and CLPS is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Usio Inc and CLPS Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CLPS Inc and Usio 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 Usio Inc 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 Usio i.e., Usio and CLPS go up and down completely randomly.

Pair Corralation between Usio and CLPS

Given the investment horizon of 90 days Usio Inc is expected to generate 0.59 times more return on investment than CLPS. However, Usio Inc is 1.7 times less risky than CLPS. It trades about 0.15 of its potential returns per unit of risk. CLPS Inc is currently generating about -0.2 per unit of risk. If you would invest  136.00  in Usio Inc on September 3, 2024 and sell it today you would earn a total of  11.00  from holding Usio Inc or generate 8.09% return on investment over 90 days.

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

Usio Inc  vs.  CLPS Inc

Usio Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Usio Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy forward indicators, Usio is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

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 latest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Usio and CLPS

The main advantage of trading using opposite Usio and CLPS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Usio 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 Usio Inc 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.