Correlation Between Paradigm and CTBC USD
Specify exactly 2 symbols:
By analyzing existing cross correlation between Paradigm SP GSCI and CTBC USD Corporate, you can compare the effects of market volatilities on Paradigm and CTBC USD 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 Paradigm with a short position of CTBC USD. Check out your portfolio center. Please also check ongoing floating volatility patterns of Paradigm and CTBC USD.
Diversification Opportunities for Paradigm and CTBC USD
Good diversification
The 3 months correlation between Paradigm and CTBC is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Paradigm SP GSCI and CTBC USD Corporate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CTBC USD Corporate and Paradigm 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 Paradigm SP GSCI are associated (or correlated) with CTBC USD. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CTBC USD Corporate has no effect on the direction of Paradigm i.e., Paradigm and CTBC USD go up and down completely randomly.
Pair Corralation between Paradigm and CTBC USD
Assuming the 90 days trading horizon Paradigm SP GSCI is expected to generate 5.22 times more return on investment than CTBC USD. However, Paradigm is 5.22 times more volatile than CTBC USD Corporate. It trades about 0.02 of its potential returns per unit of risk. CTBC USD Corporate is currently generating about 0.03 per unit of risk. If you would invest 1,281 in Paradigm SP GSCI on September 2, 2024 and sell it today you would earn a total of 20.00 from holding Paradigm SP GSCI or generate 1.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Paradigm SP GSCI vs. CTBC USD Corporate
Performance |
| Timeline |
| Paradigm SP GSCI |
| CTBC USD Corporate |
Paradigm and CTBC USD Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Paradigm and CTBC USD
The main advantage of trading using opposite Paradigm and CTBC USD positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Paradigm position performs unexpectedly, CTBC USD 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 CTBC USD will offset losses from the drop in CTBC USD's long position.| Paradigm vs. Paradigm SP GSCI | Paradigm vs. CTBC USD Corporate | Paradigm vs. Cathay TIP TAIEX | Paradigm vs. Yuanta Daily SP |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |