Correlation Between Cashmere Valley and Power Of

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

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

Diversification Opportunities for Cashmere Valley and Power Of

0.81

Correlation Coefficient

Cashmere Valley  Power Of

Very poor diversification

The 3 months correlation between Cashmere and Power is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Cashmere Valley Bank and Power of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Power Of and Cashmere Valley 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 Cashmere Valley Bank are associated (or correlated) with Power Of. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Power Of has no effect on the direction of Cashmere Valley i.e., Cashmere Valley and Power Of go up and down completely randomly.

Pair Corralation between Cashmere Valley and Power Of

Given the investment horizon of 90 days Cashmere Valley is expected to generate 2.62 times less return on investment than Power Of. But when comparing it to its historical volatility, Cashmere Valley Bank is 1.34 times less risky than Power Of. It trades about 0.1 of its potential returns per unit of risk. Power of is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest  3,576  in Power of on May 13, 2025 and sell it today you would earn a total of  617.00  from holding Power of or generate 17.25% return on investment over 90 days.

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

Cashmere Valley Bank  vs.  Power of

Cashmere Valley Bank

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Cashmere Valley Bank are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak technical indicators, Cashmere Valley may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Power Of

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Power of are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile fundamental indicators, Power Of reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Cashmere Valley and Power Of

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

The idea behind Cashmere Valley Bank and Power of 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.

Check out your portfolio center.

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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.