Correlation Between CTBC USD and CTBC TIP
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By analyzing existing cross correlation between CTBC USD Corporate and CTBC TIP Customized, you can compare the effects of market volatilities on CTBC USD and CTBC TIP 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 TIP. Check out your portfolio center. Please also check ongoing floating volatility patterns of CTBC USD and CTBC TIP.
Diversification Opportunities for CTBC USD and CTBC TIP
Weak diversification
The 3 months correlation between CTBC and CTBC is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding CTBC USD Corporate and CTBC TIP Customized in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CTBC TIP Customized 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 TIP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CTBC TIP Customized has no effect on the direction of CTBC USD i.e., CTBC USD and CTBC TIP go up and down completely randomly.
Pair Corralation between CTBC USD and CTBC TIP
Assuming the 90 days trading horizon CTBC USD is expected to generate 3.59 times less return on investment than CTBC TIP. But when comparing it to its historical volatility, CTBC USD Corporate is 1.56 times less risky than CTBC TIP. It trades about 0.03 of its potential returns per unit of risk. CTBC TIP Customized is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 1,524 in CTBC TIP Customized on September 4, 2024 and sell it today you would earn a total of 297.00 from holding CTBC TIP Customized or generate 19.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 56.25% |
| Values | Daily Returns |
CTBC USD Corporate vs. CTBC TIP Customized
Performance |
| Timeline |
| CTBC USD Corporate |
| CTBC TIP Customized |
CTBC USD and CTBC TIP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CTBC USD and CTBC TIP
The main advantage of trading using opposite CTBC USD and CTBC TIP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CTBC USD position performs unexpectedly, CTBC TIP 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 TIP will offset losses from the drop in CTBC TIP's long position.| CTBC USD vs. CTBC 20 Year | CTBC USD vs. CTBC TIP Customized | CTBC USD vs. CTBC Treasury 20 | CTBC USD vs. CTBC 15 Developed |
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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.
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