Correlation Between Catcher Technology and Yeong Guan
Can any of the company-specific risk be diversified away by investing in both Catcher Technology and Yeong Guan 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 Catcher Technology and Yeong Guan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Catcher Technology Co and Yeong Guan Energy, you can compare the effects of market volatilities on Catcher Technology and Yeong Guan 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 Catcher Technology with a short position of Yeong Guan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Catcher Technology and Yeong Guan.
Diversification Opportunities for Catcher Technology and Yeong Guan
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Catcher and Yeong is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Catcher Technology Co and Yeong Guan Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yeong Guan Energy and Catcher 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 Catcher Technology Co are associated (or correlated) with Yeong Guan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yeong Guan Energy has no effect on the direction of Catcher Technology i.e., Catcher Technology and Yeong Guan go up and down completely randomly.
Pair Corralation between Catcher Technology and Yeong Guan
Assuming the 90 days trading horizon Catcher Technology Co is expected to under-perform the Yeong Guan. In addition to that, Catcher Technology is 1.06 times more volatile than Yeong Guan Energy. It trades about -0.41 of its total potential returns per unit of risk. Yeong Guan Energy is currently generating about 0.02 per unit of volatility. If you would invest 3,975 in Yeong Guan Energy on August 27, 2024 and sell it today you would earn a total of 10.00 from holding Yeong Guan Energy or generate 0.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Catcher Technology Co vs. Yeong Guan Energy
Performance |
| Timeline |
| Catcher Technology |
| Yeong Guan Energy |
Catcher Technology and Yeong Guan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Catcher Technology and Yeong Guan
The main advantage of trading using opposite Catcher Technology and Yeong Guan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Catcher Technology position performs unexpectedly, Yeong Guan 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 Yeong Guan will offset losses from the drop in Yeong Guan's long position.| Catcher Technology vs. Novatek Microelectronics Corp | Catcher Technology vs. Quanta Computer | Catcher Technology vs. United Microelectronics |
| Yeong Guan vs. TECO Electric Machinery | Yeong Guan vs. Swancor Holding Co | Yeong Guan vs. Airtac International Group | Yeong Guan vs. Grape King Bio |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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