Correlation Between CLPS and Vantage Drilling

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

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

Diversification Opportunities for CLPS and Vantage Drilling

-0.29

Correlation Coefficient

CLPS  Vantage Drilling

Very good diversification

The 3 months correlation between CLPS and Vantage is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding CLPS Inc and Vantage Drilling International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vantage Drilling Int 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 Vantage Drilling. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vantage Drilling Int has no effect on the direction of CLPS i.e., CLPS and Vantage Drilling go up and down completely randomly.

Pair Corralation between CLPS and Vantage Drilling

Given the investment horizon of 90 days CLPS Inc is expected to under-perform the Vantage Drilling. In addition to that, CLPS is 22.27 times more volatile than Vantage Drilling International. It trades about -0.01 of its total potential returns per unit of risk. Vantage Drilling International is currently generating about 0.1 per unit of volatility. If you would invest  1,190  in Vantage Drilling International on April 21, 2025 and sell it today you would earn a total of  10.00  from holding Vantage Drilling International or generate 0.84% 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.  Vantage Drilling International

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.

Vantage Drilling Int

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Vantage Drilling International are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, Vantage Drilling is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with CLPS and Vantage Drilling

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

The idea behind CLPS Inc and Vantage Drilling International 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.