Correlation Between Amulaire Thermal and CTBC Financial
Can any of the company-specific risk be diversified away by investing in both Amulaire Thermal and CTBC Financial 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 Amulaire Thermal and CTBC Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amulaire Thermal Technology and CTBC Financial Holding, you can compare the effects of market volatilities on Amulaire Thermal and CTBC Financial 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 Amulaire Thermal with a short position of CTBC Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amulaire Thermal and CTBC Financial.
Diversification Opportunities for Amulaire Thermal and CTBC Financial
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Amulaire and CTBC is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Amulaire Thermal Technology and CTBC Financial Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CTBC Financial Holding and Amulaire Thermal 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 Amulaire Thermal Technology are associated (or correlated) with CTBC Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CTBC Financial Holding has no effect on the direction of Amulaire Thermal i.e., Amulaire Thermal and CTBC Financial go up and down completely randomly.
Pair Corralation between Amulaire Thermal and CTBC Financial
Assuming the 90 days trading horizon Amulaire Thermal Technology is expected to under-perform the CTBC Financial. In addition to that, Amulaire Thermal is 11.49 times more volatile than CTBC Financial Holding. It trades about -0.03 of its total potential returns per unit of risk. CTBC Financial Holding is currently generating about 0.05 per unit of volatility. If you would invest 5,750 in CTBC Financial Holding on October 26, 2024 and sell it today you would earn a total of 90.00 from holding CTBC Financial Holding or generate 1.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amulaire Thermal Technology vs. CTBC Financial Holding
Performance |
| Timeline |
| Amulaire Thermal Tec |
| CTBC Financial Holding |
Amulaire Thermal and CTBC Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amulaire Thermal and CTBC Financial
The main advantage of trading using opposite Amulaire Thermal and CTBC Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amulaire Thermal position performs unexpectedly, CTBC Financial 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 Financial will offset losses from the drop in CTBC Financial's long position.| Amulaire Thermal vs. Jentech Precision Industrial | Amulaire Thermal vs. Yusin Holding Corp | Amulaire Thermal vs. Laster Tech Corp | Amulaire Thermal vs. Turvo International Co |
| CTBC Financial vs. Wei Chih Steel | CTBC Financial vs. Quintain Steel Co | CTBC Financial vs. Shan Loong Transportation Co | CTBC Financial vs. Amulaire Thermal Technology |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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