Correlation Between Catcher Technology and Waffer Technology
Can any of the company-specific risk be diversified away by investing in both Catcher Technology and Waffer 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 Waffer 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 Waffer Technology Corp, you can compare the effects of market volatilities on Catcher Technology and Waffer 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 Waffer Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Catcher Technology and Waffer Technology.
Diversification Opportunities for Catcher Technology and Waffer Technology
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Catcher and Waffer is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Catcher Technology Co and Waffer Technology Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Waffer Technology Corp 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 Waffer Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Waffer Technology Corp has no effect on the direction of Catcher Technology i.e., Catcher Technology and Waffer Technology go up and down completely randomly.
Pair Corralation between Catcher Technology and Waffer Technology
Assuming the 90 days trading horizon Catcher Technology Co is expected to generate 0.57 times more return on investment than Waffer Technology. However, Catcher Technology Co is 1.76 times less risky than Waffer Technology. It trades about -0.02 of its potential returns per unit of risk. Waffer Technology Corp is currently generating about -0.04 per unit of risk. If you would invest 21,100 in Catcher Technology Co on October 26, 2024 and sell it today you would lose (1,200) from holding Catcher Technology Co or give up 5.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Catcher Technology Co vs. Waffer Technology Corp
Performance |
| Timeline |
| Catcher Technology |
| Waffer Technology Corp |
Catcher Technology and Waffer Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Catcher Technology and Waffer Technology
The main advantage of trading using opposite Catcher Technology and Waffer Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Catcher Technology position performs unexpectedly, Waffer 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 Waffer Technology will offset losses from the drop in Waffer Technology's long position.| Catcher Technology vs. LARGAN Precision Co | Catcher Technology vs. Delta Electronics | Catcher Technology vs. Quanta Computer | Catcher Technology vs. Pegatron Corp |
| Waffer Technology vs. Catcher Technology Co | Waffer Technology vs. Acbel Polytech | Waffer Technology vs. Nan Ya Printed | Waffer Technology vs. Gemtek 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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