Correlation Between Catcher Technology and Anpec Electronics
Can any of the company-specific risk be diversified away by investing in both Catcher Technology and Anpec Electronics 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 Anpec Electronics 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 Anpec Electronics, you can compare the effects of market volatilities on Catcher Technology and Anpec Electronics 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 Anpec Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Catcher Technology and Anpec Electronics.
Diversification Opportunities for Catcher Technology and Anpec Electronics
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Catcher and Anpec is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Catcher Technology Co and Anpec Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anpec Electronics 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 Anpec Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anpec Electronics has no effect on the direction of Catcher Technology i.e., Catcher Technology and Anpec Electronics go up and down completely randomly.
Pair Corralation between Catcher Technology and Anpec Electronics
Assuming the 90 days trading horizon Catcher Technology is expected to generate 1.04 times less return on investment than Anpec Electronics. But when comparing it to its historical volatility, Catcher Technology Co is 1.24 times less risky than Anpec Electronics. It trades about 0.42 of its potential returns per unit of risk. Anpec Electronics is currently generating about 0.35 of returns per unit of risk over similar time horizon. If you would invest 17,150 in Anpec Electronics on November 28, 2024 and sell it today you would earn a total of 900.00 from holding Anpec Electronics or generate 5.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Catcher Technology Co vs. Anpec Electronics
Performance |
| Timeline |
| Catcher Technology |
| Anpec Electronics |
Catcher Technology and Anpec Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Catcher Technology and Anpec Electronics
The main advantage of trading using opposite Catcher Technology and Anpec Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Catcher Technology position performs unexpectedly, Anpec Electronics 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 Anpec Electronics will offset losses from the drop in Anpec Electronics' long position.| Catcher Technology vs. LARGAN Precision Co | Catcher Technology vs. Delta Electronics | Catcher Technology vs. Quanta Computer | Catcher Technology vs. Pegatron Corp |
| Anpec Electronics vs. Realtek Semiconductor Corp | Anpec Electronics vs. Novatek Microelectronics Corp | Anpec Electronics vs. Elan Microelectronics Corp | Anpec Electronics vs. Global Mixed Mode Technology |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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