Correlation Between Catcher Technology and Airtac International
Can any of the company-specific risk be diversified away by investing in both Catcher Technology and Airtac International 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 Airtac International 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 Airtac International Group, you can compare the effects of market volatilities on Catcher Technology and Airtac International 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 Airtac International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Catcher Technology and Airtac International.
Diversification Opportunities for Catcher Technology and Airtac International
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Catcher and Airtac is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Catcher Technology Co and Airtac International Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Airtac International 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 Airtac International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Airtac International has no effect on the direction of Catcher Technology i.e., Catcher Technology and Airtac International go up and down completely randomly.
Pair Corralation between Catcher Technology and Airtac International
Assuming the 90 days trading horizon Catcher Technology Co is expected to under-perform the Airtac International. In addition to that, Catcher Technology is 1.02 times more volatile than Airtac International Group. It trades about -0.41 of its total potential returns per unit of risk. Airtac International Group is currently generating about -0.28 per unit of volatility. If you would invest 89,400 in Airtac International Group on August 31, 2024 and sell it today you would lose (10,400) from holding Airtac International Group or give up 11.63% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Catcher Technology Co vs. Airtac International Group
Performance |
| Timeline |
| Catcher Technology |
| Airtac International |
Catcher Technology and Airtac International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Catcher Technology and Airtac International
The main advantage of trading using opposite Catcher Technology and Airtac International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Catcher Technology position performs unexpectedly, Airtac International 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 Airtac International will offset losses from the drop in Airtac International's long position.| Catcher Technology vs. LARGAN Precision Co | Catcher Technology vs. Delta Electronics | Catcher Technology vs. Quanta Computer | Catcher Technology vs. Pegatron Corp |
| Airtac International vs. BES Engineering Co | Airtac International vs. Continental Holdings Corp | Airtac International vs. Kee Tai Properties | Airtac International vs. Hung Sheng Construction |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |