Correlation Between Catcher Technology and Camellia Metal
Can any of the company-specific risk be diversified away by investing in both Catcher Technology and Camellia Metal 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 Camellia Metal 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 Camellia Metal Co, you can compare the effects of market volatilities on Catcher Technology and Camellia Metal 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 Camellia Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Catcher Technology and Camellia Metal.
Diversification Opportunities for Catcher Technology and Camellia Metal
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Catcher and Camellia is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Catcher Technology Co and Camellia Metal Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Camellia Metal 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 Camellia Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Camellia Metal has no effect on the direction of Catcher Technology i.e., Catcher Technology and Camellia Metal go up and down completely randomly.
Pair Corralation between Catcher Technology and Camellia Metal
Assuming the 90 days trading horizon Catcher Technology Co is expected to generate 0.76 times more return on investment than Camellia Metal. However, Catcher Technology Co is 1.32 times less risky than Camellia Metal. It trades about 0.46 of its potential returns per unit of risk. Camellia Metal Co is currently generating about 0.04 per unit of risk. If you would invest 18,550 in Catcher Technology Co on October 23, 2024 and sell it today you would earn a total of 1,300 from holding Catcher Technology Co or generate 7.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Catcher Technology Co vs. Camellia Metal Co
Performance |
| Timeline |
| Catcher Technology |
| Camellia Metal |
Catcher Technology and Camellia Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Catcher Technology and Camellia Metal
The main advantage of trading using opposite Catcher Technology and Camellia Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Catcher Technology position performs unexpectedly, Camellia Metal 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 Camellia Metal will offset losses from the drop in Camellia Metal's long position.| Catcher Technology vs. LARGAN Precision Co | Catcher Technology vs. Delta Electronics | Catcher Technology vs. Quanta Computer | Catcher Technology vs. Pegatron Corp |
| Camellia Metal vs. Standard Foods Corp | Camellia Metal vs. Cathay Chemical Works | Camellia Metal vs. Grand Pacific Petrochemical | Camellia Metal vs. Yung Zip Chemical |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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