Correlation Between Capital Ice and Cathay Taiwan
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By analyzing existing cross correlation between Capital Ice 1 5 and Cathay Taiwan 5G, you can compare the effects of market volatilities on Capital Ice and Cathay Taiwan 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 Capital Ice with a short position of Cathay Taiwan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Capital Ice and Cathay Taiwan.
Diversification Opportunities for Capital Ice and Cathay Taiwan
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Capital and Cathay is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Capital Ice 1 5 and Cathay Taiwan 5G in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cathay Taiwan 5G and Capital Ice 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 Capital Ice 1 5 are associated (or correlated) with Cathay Taiwan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cathay Taiwan 5G has no effect on the direction of Capital Ice i.e., Capital Ice and Cathay Taiwan go up and down completely randomly.
Pair Corralation between Capital Ice and Cathay Taiwan
Assuming the 90 days trading horizon Capital Ice 1 5 is expected to generate 0.32 times more return on investment than Cathay Taiwan. However, Capital Ice 1 5 is 3.12 times less risky than Cathay Taiwan. It trades about 0.24 of its potential returns per unit of risk. Cathay Taiwan 5G is currently generating about -0.02 per unit of risk. If you would invest 3,858 in Capital Ice 1 5 on September 5, 2024 and sell it today you would earn a total of 77.00 from holding Capital Ice 1 5 or generate 2.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Capital Ice 1 5 vs. Cathay Taiwan 5G
Performance |
| Timeline |
| Capital Ice 1 |
| Cathay Taiwan 5G |
Capital Ice and Cathay Taiwan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Capital Ice and Cathay Taiwan
The main advantage of trading using opposite Capital Ice and Cathay Taiwan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Capital Ice position performs unexpectedly, Cathay Taiwan 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 Cathay Taiwan will offset losses from the drop in Cathay Taiwan's long position.| Capital Ice vs. Capital ICE 15 | Capital Ice vs. Capital ICE International15 | Capital Ice vs. Capital BofA Merrill | Capital Ice vs. Capital Nasdaq Biotechnology |
| Cathay Taiwan vs. Ruentex Development Co | Cathay Taiwan vs. Symtek Automation Asia | Cathay Taiwan vs. CTCI Corp | Cathay Taiwan vs. Information Technology Total |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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