Correlation Between CTBC Financial and Ardentec
Can any of the company-specific risk be diversified away by investing in both CTBC Financial and Ardentec 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 CTBC Financial and Ardentec into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CTBC Financial Holding and Ardentec, you can compare the effects of market volatilities on CTBC Financial and Ardentec 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 CTBC Financial with a short position of Ardentec. Check out your portfolio center. Please also check ongoing floating volatility patterns of CTBC Financial and Ardentec.
Diversification Opportunities for CTBC Financial and Ardentec
-0.86 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CTBC and Ardentec is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding CTBC Financial Holding and Ardentec in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ardentec and CTBC Financial 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 CTBC Financial Holding are associated (or correlated) with Ardentec. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ardentec has no effect on the direction of CTBC Financial i.e., CTBC Financial and Ardentec go up and down completely randomly.
Pair Corralation between CTBC Financial and Ardentec
Assuming the 90 days trading horizon CTBC Financial Holding is expected to generate 0.81 times more return on investment than Ardentec. However, CTBC Financial Holding is 1.23 times less risky than Ardentec. It trades about 0.02 of its potential returns per unit of risk. Ardentec is currently generating about -0.1 per unit of risk. If you would invest 3,640 in CTBC Financial Holding on September 1, 2024 and sell it today you would earn a total of 100.00 from holding CTBC Financial Holding or generate 2.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 99.22% |
| Values | Daily Returns |
CTBC Financial Holding vs. Ardentec
Performance |
| Timeline |
| CTBC Financial Holding |
| Ardentec |
CTBC Financial and Ardentec Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CTBC Financial and Ardentec
The main advantage of trading using opposite CTBC Financial and Ardentec positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CTBC Financial position performs unexpectedly, Ardentec 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 Ardentec will offset losses from the drop in Ardentec's long position.| CTBC Financial vs. Central Reinsurance Corp | CTBC Financial vs. Huaku Development Co | CTBC Financial vs. Fubon Financial Holding |
| Ardentec vs. AzureWave Technologies | Ardentec vs. Chicony Power Technology | Ardentec vs. Integrated Service Technology | Ardentec vs. Microelectronics 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |