Correlation Between CLPS and 9F

Can any of the company-specific risk be diversified away by investing in both CLPS and 9F 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 9F into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between CLPS Inc and 9F Inc, you can compare the effects of market volatilities on CLPS and 9F 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 9F. Check out your portfolio center. Please also check ongoing floating volatility patterns of CLPS and 9F.

Diversification Opportunities for CLPS and 9F

-0.25

Correlation Coefficient

CLPS  9F

Very good diversification

The 3 months correlation between CLPS and 9F is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding CLPS Inc and 9F Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 9F Inc 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 9F. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 9F Inc has no effect on the direction of CLPS i.e., CLPS and 9F go up and down completely randomly.

Pair Corralation between CLPS and 9F

Given the investment horizon of 90 days CLPS Inc is expected to under-perform the 9F. But the stock apears to be less risky and, when comparing its historical volatility, CLPS Inc is 1.92 times less risky than 9F. The stock trades about -0.01 of its potential returns per unit of risk. The 9F Inc is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest  102.00  in 9F Inc on April 20, 2025 and sell it today you would earn a total of  58.00  from holding 9F Inc or generate 56.86% 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.  9F Inc

CLPS Inc

Risk-Adjusted Performance

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.

9F Inc

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in 9F Inc are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain technical and fundamental indicators, 9F unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with CLPS and 9F

The main advantage of trading using opposite CLPS and 9F positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CLPS position performs unexpectedly, 9F 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 9F will offset losses from the drop in 9F's long position.

The idea behind CLPS Inc and 9F 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.