Correlation Between RedCloud Holdings and TechCreate

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

By analyzing existing cross correlation between RedCloud Holdings plc and TechCreate Group, you can compare the effects of market volatilities on RedCloud Holdings and TechCreate 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 RedCloud Holdings with a short position of TechCreate. Check out your portfolio center. Please also check ongoing floating volatility patterns of RedCloud Holdings and TechCreate.

Diversification Opportunities for RedCloud Holdings and TechCreate

-0.04

Correlation Coefficient

RedCloud Holdings  TechCreate

Good diversification

The 3 months correlation between RedCloud and TechCreate is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding RedCloud Holdings plc and TechCreate Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TechCreate Group and RedCloud Holdings 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 RedCloud Holdings plc are associated (or correlated) with TechCreate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TechCreate Group has no effect on the direction of RedCloud Holdings i.e., RedCloud Holdings and TechCreate go up and down completely randomly.

Pair Corralation between RedCloud Holdings and TechCreate

Considering the 90-day investment horizon RedCloud Holdings plc is expected to under-perform the TechCreate. In addition to that, RedCloud Holdings is 1.48 times more volatile than TechCreate Group. It trades about -0.07 of its total potential returns per unit of risk. TechCreate Group is currently generating about 0.08 per unit of volatility. If you would invest  493.00  in TechCreate Group on October 9, 2025 and sell it today you would earn a total of  69.00  from holding TechCreate Group or generate 14.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	93.44%
Values	Daily Returns

RedCloud Holdings plc  vs.  TechCreate Group

RedCloud Holdings plc

Risk-Adjusted Performance

Weakest

Over the last 90 days RedCloud Holdings plc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's fundamental indicators remain comparatively stable which may send shares a bit higher in February 2026. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

TechCreate Group

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in TechCreate Group are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite quite unfluctuating technical and fundamental indicators, TechCreate disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with RedCloud Holdings and TechCreate

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

The idea behind RedCloud Holdings plc and TechCreate 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.