Correlation Between Catcher Technology and Welldone
Can any of the company-specific risk be diversified away by investing in both Catcher Technology and Welldone 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 Welldone 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 Welldone Co, you can compare the effects of market volatilities on Catcher Technology and Welldone 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 Welldone. Check out your portfolio center. Please also check ongoing floating volatility patterns of Catcher Technology and Welldone.
Diversification Opportunities for Catcher Technology and Welldone
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Catcher and Welldone is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Catcher Technology Co and Welldone Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Welldone 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 Welldone. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Welldone has no effect on the direction of Catcher Technology i.e., Catcher Technology and Welldone go up and down completely randomly.
Pair Corralation between Catcher Technology and Welldone
Assuming the 90 days trading horizon Catcher Technology Co is expected to under-perform the Welldone. In addition to that, Catcher Technology is 1.26 times more volatile than Welldone Co. It trades about -0.37 of its total potential returns per unit of risk. Welldone Co is currently generating about 0.1 per unit of volatility. If you would invest 4,850 in Welldone Co on September 13, 2024 and sell it today you would earn a total of 150.00 from holding Welldone Co or generate 3.09% 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. Welldone Co
Performance |
| Timeline |
| Catcher Technology |
| Welldone |
Catcher Technology and Welldone Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Catcher Technology and Welldone
The main advantage of trading using opposite Catcher Technology and Welldone positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Catcher Technology position performs unexpectedly, Welldone 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 Welldone will offset losses from the drop in Welldone's long position.| Catcher Technology vs. AU Optronics | Catcher Technology vs. Innolux Corp | Catcher Technology vs. Ruentex Development Co | Catcher Technology vs. WiseChip Semiconductor |
| Welldone vs. Sunny Friend Environmental | Welldone vs. Aspeed Technology | Welldone vs. Standard Foods Corp | Welldone vs. Realtek Semiconductor Corp |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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