Correlation Between Noble Financials and Cloud Technologies

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

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

Diversification Opportunities for Noble Financials and Cloud Technologies

-0.58

Correlation Coefficient

Noble Financials  Cloud Technologies

Excellent diversification

The 3 months correlation between Noble and Cloud is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Noble Financials SA and Cloud Technologies SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cloud Technologies and Noble Financials 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 Noble Financials SA are associated (or correlated) with Cloud Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cloud Technologies has no effect on the direction of Noble Financials i.e., Noble Financials and Cloud Technologies go up and down completely randomly.

Pair Corralation between Noble Financials and Cloud Technologies

Assuming the 90 days trading horizon Noble Financials is expected to generate 1.55 times less return on investment than Cloud Technologies. But when comparing it to its historical volatility, Noble Financials SA is 1.15 times less risky than Cloud Technologies. It trades about 0.03 of its potential returns per unit of risk. Cloud Technologies SA is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  4,285  in Cloud Technologies SA on April 24, 2025 and sell it today you would earn a total of  245.00  from holding Cloud Technologies SA or generate 5.72% return on investment over 90 days.

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

Noble Financials SA  vs.  Cloud Technologies SA

Noble Financials

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Noble Financials SA are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Noble Financials may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Cloud Technologies

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Cloud Technologies SA are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Cloud Technologies may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Noble Financials and Cloud Technologies

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

The idea behind Noble Financials SA and Cloud Technologies SA 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..