Correlation Between Amtran Technology and C Tech
Can any of the company-specific risk be diversified away by investing in both Amtran Technology and C Tech 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 Amtran Technology and C Tech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amtran Technology Co and C Tech United, you can compare the effects of market volatilities on Amtran Technology and C Tech 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 Amtran Technology with a short position of C Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amtran Technology and C Tech.
Diversification Opportunities for Amtran Technology and C Tech
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Amtran and 3625 is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Amtran Technology Co and C Tech United in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on C Tech United and Amtran 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 Amtran Technology Co are associated (or correlated) with C Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of C Tech United has no effect on the direction of Amtran Technology i.e., Amtran Technology and C Tech go up and down completely randomly.
Pair Corralation between Amtran Technology and C Tech
Assuming the 90 days trading horizon Amtran Technology is expected to generate 12.39 times less return on investment than C Tech. But when comparing it to its historical volatility, Amtran Technology Co is 1.23 times less risky than C Tech. It trades about 0.02 of its potential returns per unit of risk. C Tech United is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 1,205 in C Tech United on September 4, 2024 and sell it today you would earn a total of 575.00 from holding C Tech United or generate 47.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amtran Technology Co vs. C Tech United
Performance |
| Timeline |
| Amtran Technology |
| C Tech United |
Amtran Technology and C Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amtran Technology and C Tech
The main advantage of trading using opposite Amtran Technology and C Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amtran Technology position performs unexpectedly, C Tech 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 C Tech will offset losses from the drop in C Tech's long position.| Amtran Technology vs. Tainan Spinning Co | Amtran Technology vs. Chia Her Industrial | Amtran Technology vs. WiseChip Semiconductor | Amtran Technology vs. Novatek Microelectronics Corp |
| C Tech vs. WT Microelectronics Co | C Tech vs. Bright Led Electronics | C Tech vs. Formosa Electronic Industries | C Tech vs. Lelon Electronics 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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