Correlation Between Catcher Technology and STL Technology
Can any of the company-specific risk be diversified away by investing in both Catcher Technology and STL Technology 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 STL Technology 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 STL Technology Co, you can compare the effects of market volatilities on Catcher Technology and STL Technology 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 STL Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Catcher Technology and STL Technology.
Diversification Opportunities for Catcher Technology and STL Technology
-0.9 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Catcher and STL is -0.9. Overlapping area represents the amount of risk that can be diversified away by holding Catcher Technology Co and STL Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STL Technology 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 STL Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STL Technology has no effect on the direction of Catcher Technology i.e., Catcher Technology and STL Technology go up and down completely randomly.
Pair Corralation between Catcher Technology and STL Technology
Assuming the 90 days trading horizon Catcher Technology is expected to generate 5.81 times less return on investment than STL Technology. But when comparing it to its historical volatility, Catcher Technology Co is 1.85 times less risky than STL Technology. It trades about 0.02 of its potential returns per unit of risk. STL Technology Co is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 3,950 in STL Technology Co on September 12, 2024 and sell it today you would earn a total of 1,850 from holding STL Technology Co or generate 46.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Catcher Technology Co vs. STL Technology Co
Performance |
| Timeline |
| Catcher Technology |
| STL Technology |
Catcher Technology and STL Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Catcher Technology and STL Technology
The main advantage of trading using opposite Catcher Technology and STL Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Catcher Technology position performs unexpectedly, STL Technology 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 STL Technology will offset losses from the drop in STL Technology's long position.| Catcher Technology vs. AU Optronics | Catcher Technology vs. Innolux Corp | Catcher Technology vs. Ruentex Development Co | Catcher Technology vs. WiseChip Semiconductor |
| STL Technology vs. Voltronic Power Technology | STL Technology vs. Advanced Energy Solution | STL Technology vs. Simplo Technology Co | STL Technology vs. Amtran Technology Co |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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