Correlation Between Catcher Technology and Orient Pharma
Can any of the company-specific risk be diversified away by investing in both Catcher Technology and Orient Pharma 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 Orient Pharma 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 Orient Pharma Co, you can compare the effects of market volatilities on Catcher Technology and Orient Pharma 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 Orient Pharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Catcher Technology and Orient Pharma.
Diversification Opportunities for Catcher Technology and Orient Pharma
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Catcher and Orient is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Catcher Technology Co and Orient Pharma Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Orient Pharma 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 Orient Pharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Orient Pharma has no effect on the direction of Catcher Technology i.e., Catcher Technology and Orient Pharma go up and down completely randomly.
Pair Corralation between Catcher Technology and Orient Pharma
Assuming the 90 days trading horizon Catcher Technology Co is expected to under-perform the Orient Pharma. But the stock apears to be less risky and, when comparing its historical volatility, Catcher Technology Co is 2.99 times less risky than Orient Pharma. The stock trades about -0.31 of its potential returns per unit of risk. The Orient Pharma Co is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 2,530 in Orient Pharma Co on September 13, 2024 and sell it today you would earn a total of 1,185 from holding Orient Pharma Co or generate 46.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Catcher Technology Co vs. Orient Pharma Co
Performance |
| Timeline |
| Catcher Technology |
| Orient Pharma |
Catcher Technology and Orient Pharma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Catcher Technology and Orient Pharma
The main advantage of trading using opposite Catcher Technology and Orient Pharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Catcher Technology position performs unexpectedly, Orient Pharma 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 Orient Pharma will offset losses from the drop in Orient Pharma's long position.| Catcher Technology vs. AU Optronics | Catcher Technology vs. Innolux Corp | Catcher Technology vs. Ruentex Development Co | Catcher Technology vs. WiseChip Semiconductor |
| Orient Pharma vs. Quintain Steel Co | Orient Pharma vs. Iron Force Industrial | Orient Pharma vs. Chung Hwa Food | Orient Pharma vs. Lian Hwa Foods |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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