Correlation Between CTBC Financial and Antec
Can any of the company-specific risk be diversified away by investing in both CTBC Financial and Antec 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 Antec 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 Antec Inc, you can compare the effects of market volatilities on CTBC Financial and Antec 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 Antec. Check out your portfolio center. Please also check ongoing floating volatility patterns of CTBC Financial and Antec.
Diversification Opportunities for CTBC Financial and Antec
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between CTBC and Antec is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding CTBC Financial Holding and Antec Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Antec Inc 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 Antec. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Antec Inc has no effect on the direction of CTBC Financial i.e., CTBC Financial and Antec go up and down completely randomly.
Pair Corralation between CTBC Financial and Antec
Assuming the 90 days trading horizon CTBC Financial is expected to generate 1.77 times less return on investment than Antec. But when comparing it to its historical volatility, CTBC Financial Holding is 3.47 times less risky than Antec. It trades about 0.1 of its potential returns per unit of risk. Antec Inc is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,652 in Antec Inc on September 1, 2024 and sell it today you would earn a total of 1,408 from holding Antec Inc or generate 85.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.78% |
| Values | Daily Returns |
CTBC Financial Holding vs. Antec Inc
Performance |
| Timeline |
| CTBC Financial Holding |
| Antec Inc |
CTBC Financial and Antec Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CTBC Financial and Antec
The main advantage of trading using opposite CTBC Financial and Antec positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CTBC Financial position performs unexpectedly, Antec 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 Antec will offset losses from the drop in Antec's long position.| CTBC Financial vs. Central Reinsurance Corp | CTBC Financial vs. Huaku Development Co | CTBC Financial vs. Fubon Financial Holding |
| Antec vs. Mechema Chemicals Int | Antec vs. International CSRC Investment | Antec vs. Cameo Communications | Antec vs. TWOWAY Communications |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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