Correlation Between CLPS and Everus Construction

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

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

Diversification Opportunities for CLPS and Everus Construction

-0.37

Correlation Coefficient

CLPS  Everus Construction

Very good diversification

The 3 months correlation between CLPS and Everus is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding CLPS Inc and Everus Construction Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Everus Construction 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 Everus Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Everus Construction has no effect on the direction of CLPS i.e., CLPS and Everus Construction go up and down completely randomly.

Pair Corralation between CLPS and Everus Construction

Given the investment horizon of 90 days CLPS is expected to generate 6.57 times less return on investment than Everus Construction. In addition to that, CLPS is 1.25 times more volatile than Everus Construction Group. It trades about 0.03 of its total potential returns per unit of risk. Everus Construction Group is currently generating about 0.21 per unit of volatility. If you would invest  5,739  in Everus Construction Group on May 22, 2025 and sell it today you would earn a total of  1,798  from holding Everus Construction Group or generate 31.33% return on investment over 90 days.

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

CLPS Inc  vs.  Everus Construction Group

CLPS Inc

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in CLPS Inc are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. 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.

Everus Construction

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Everus Construction Group are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. Despite nearly unfluctuating fundamental indicators, Everus Construction reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with CLPS and Everus Construction

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

The idea behind CLPS Inc and Everus Construction Group 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.