Correlation Between CTBC USD and CTBC 15
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By analyzing existing cross correlation between CTBC USD Corporate and CTBC 15 Developed, you can compare the effects of market volatilities on CTBC USD and CTBC 15 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 CTBC USD with a short position of CTBC 15. Check out your portfolio center. Please also check ongoing floating volatility patterns of CTBC USD and CTBC 15.
Diversification Opportunities for CTBC USD and CTBC 15
Almost no diversification
The 3 months correlation between CTBC and CTBC is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding CTBC USD Corporate and CTBC 15 Developed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CTBC 15 Developed and CTBC USD 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 CTBC USD Corporate are associated (or correlated) with CTBC 15. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CTBC 15 Developed has no effect on the direction of CTBC USD i.e., CTBC USD and CTBC 15 go up and down completely randomly.
Pair Corralation between CTBC USD and CTBC 15
Assuming the 90 days trading horizon CTBC USD Corporate is expected to generate 0.96 times more return on investment than CTBC 15. However, CTBC USD Corporate is 1.04 times less risky than CTBC 15. It trades about 0.03 of its potential returns per unit of risk. CTBC 15 Developed is currently generating about 0.01 per unit of risk. If you would invest 3,349 in CTBC USD Corporate on September 3, 2024 and sell it today you would earn a total of 291.00 from holding CTBC USD Corporate or generate 8.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
CTBC USD Corporate vs. CTBC 15 Developed
Performance |
| Timeline |
| CTBC USD Corporate |
| CTBC 15 Developed |
CTBC USD and CTBC 15 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CTBC USD and CTBC 15
The main advantage of trading using opposite CTBC USD and CTBC 15 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CTBC USD position performs unexpectedly, CTBC 15 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 15 will offset losses from the drop in CTBC 15's long position.| CTBC USD vs. Cathay Taiwan 5G | CTBC USD vs. Ruentex Development Co | CTBC USD vs. Symtek Automation Asia | CTBC USD vs. CTCI Corp |
| CTBC 15 vs. CTBC USD Corporate | CTBC 15 vs. CTBC 20 Year | CTBC 15 vs. CTBC TIP Customized | CTBC 15 vs. CTBC Treasury 20 |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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