Correlation Between Chaintech Technology and Collins
Can any of the company-specific risk be diversified away by investing in both Chaintech Technology and Collins 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 Chaintech Technology and Collins into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chaintech Technology Corp and Collins Co, you can compare the effects of market volatilities on Chaintech Technology and Collins 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 Chaintech Technology with a short position of Collins. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chaintech Technology and Collins.
Diversification Opportunities for Chaintech Technology and Collins
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Chaintech and Collins is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Chaintech Technology Corp and Collins Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Collins and Chaintech Technology 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 Chaintech Technology Corp are associated (or correlated) with Collins. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Collins has no effect on the direction of Chaintech Technology i.e., Chaintech Technology and Collins go up and down completely randomly.
Pair Corralation between Chaintech Technology and Collins
Assuming the 90 days trading horizon Chaintech Technology Corp is expected to under-perform the Collins. In addition to that, Chaintech Technology is 1.67 times more volatile than Collins Co. It trades about -0.02 of its total potential returns per unit of risk. Collins Co is currently generating about 0.0 per unit of volatility. If you would invest 1,840 in Collins Co on September 2, 2024 and sell it today you would lose (55.00) from holding Collins Co or give up 2.99% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chaintech Technology Corp vs. Collins Co
Performance |
| Timeline |
| Chaintech Technology Corp |
| Collins |
Chaintech Technology and Collins Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chaintech Technology and Collins
The main advantage of trading using opposite Chaintech Technology and Collins positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chaintech Technology position performs unexpectedly, Collins 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 Collins will offset losses from the drop in Collins' long position.| Chaintech Technology vs. Biostar Microtech International | Chaintech Technology vs. Elitegroup Computer Systems | Chaintech Technology vs. Shuttle | Chaintech Technology vs. Gigabyte Technology Co |
| Collins vs. Chaintech Technology Corp | Collins vs. Avision | Collins vs. Clevo Co | Collins vs. Elitegroup Computer Systems |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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