Correlation Between Camellia Metal and Catcher Technology
Can any of the company-specific risk be diversified away by investing in both Camellia Metal and Catcher Technology at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Camellia Metal and Catcher Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Camellia Metal Co and Catcher Technology Co, you can compare the effects of market volatilities on Camellia Metal and Catcher Technology 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 Camellia Metal with a short position of Catcher Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Camellia Metal and Catcher Technology.
Diversification Opportunities for Camellia Metal and Catcher Technology
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Camellia and Catcher is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Camellia Metal Co and Catcher Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Catcher Technology and Camellia Metal 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 Camellia Metal Co are associated (or correlated) with Catcher Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Catcher Technology has no effect on the direction of Camellia Metal i.e., Camellia Metal and Catcher Technology go up and down completely randomly.
Pair Corralation between Camellia Metal and Catcher Technology
Assuming the 90 days trading horizon Camellia Metal is expected to generate 3.97 times less return on investment than Catcher Technology. In addition to that, Camellia Metal is 1.66 times more volatile than Catcher Technology Co. It trades about 0.07 of its total potential returns per unit of risk. Catcher Technology Co is currently generating about 0.46 per unit of volatility. If you would invest 19,750 in Catcher Technology Co on November 28, 2024 and sell it today you would earn a total of 1,150 from holding Catcher Technology Co or generate 5.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Camellia Metal Co vs. Catcher Technology Co
Performance |
| Timeline |
| Camellia Metal |
| Catcher Technology |
Camellia Metal and Catcher Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Camellia Metal and Catcher Technology
The main advantage of trading using opposite Camellia Metal and Catcher Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Camellia Metal position performs unexpectedly, Catcher Technology 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 Catcher Technology will offset losses from the drop in Catcher Technology's long position.| Camellia Metal vs. China Metal Products | Camellia Metal vs. Hwa Fong Rubber | Camellia Metal vs. Farglory FTZ Investment | Camellia Metal vs. Kenda Rubber Industrial |
| Catcher Technology vs. LARGAN Precision Co | Catcher Technology vs. Delta Electronics | Catcher Technology vs. Quanta Computer | Catcher Technology vs. Pegatron Corp |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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