Correlation Between CTBC 15 and CTBC 20
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By analyzing existing cross correlation between CTBC 15 Developed and CTBC 20 Year, you can compare the effects of market volatilities on CTBC 15 and CTBC 20 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 15 with a short position of CTBC 20. Check out your portfolio center. Please also check ongoing floating volatility patterns of CTBC 15 and CTBC 20.
Diversification Opportunities for CTBC 15 and CTBC 20
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 15 Developed and CTBC 20 Year in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CTBC 20 Year and CTBC 15 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 15 Developed are associated (or correlated) with CTBC 20. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CTBC 20 Year has no effect on the direction of CTBC 15 i.e., CTBC 15 and CTBC 20 go up and down completely randomly.
Pair Corralation between CTBC 15 and CTBC 20
Assuming the 90 days trading horizon CTBC 15 is expected to generate 1.15 times less return on investment than CTBC 20. In addition to that, CTBC 15 is 1.02 times more volatile than CTBC 20 Year. It trades about 0.32 of its total potential returns per unit of risk. CTBC 20 Year is currently generating about 0.37 per unit of volatility. If you would invest 3,293 in CTBC 20 Year on September 3, 2024 and sell it today you would earn a total of 158.00 from holding CTBC 20 Year or generate 4.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
CTBC 15 Developed vs. CTBC 20 Year
Performance |
| Timeline |
| CTBC 15 Developed |
| CTBC 20 Year |
CTBC 15 and CTBC 20 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CTBC 15 and CTBC 20
The main advantage of trading using opposite CTBC 15 and CTBC 20 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CTBC 15 position performs unexpectedly, CTBC 20 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 20 will offset losses from the drop in CTBC 20's long position.| CTBC 15 vs. CTBC USD Corporate | CTBC 15 vs. CTBC 20 Year | CTBC 15 vs. CTBC TIP Customized | CTBC 15 vs. CTBC Treasury 20 |
| CTBC 20 vs. CTBC USD Corporate | CTBC 20 vs. CTBC TIP Customized | CTBC 20 vs. CTBC Treasury 20 | CTBC 20 vs. CTBC 15 Developed |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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