Correlation Between Thermaltake Technology and First Copper
Can any of the company-specific risk be diversified away by investing in both Thermaltake Technology and First Copper 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 Thermaltake Technology and First Copper into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thermaltake Technology Co and First Copper Technology, you can compare the effects of market volatilities on Thermaltake Technology and First Copper 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 Thermaltake Technology with a short position of First Copper. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thermaltake Technology and First Copper.
Diversification Opportunities for Thermaltake Technology and First Copper
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Thermaltake and First is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Thermaltake Technology Co and First Copper Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Copper Technology and Thermaltake 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 Thermaltake Technology Co are associated (or correlated) with First Copper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Copper Technology has no effect on the direction of Thermaltake Technology i.e., Thermaltake Technology and First Copper go up and down completely randomly.
Pair Corralation between Thermaltake Technology and First Copper
Assuming the 90 days trading horizon Thermaltake Technology Co is expected to generate 1.4 times more return on investment than First Copper. However, Thermaltake Technology is 1.4 times more volatile than First Copper Technology. It trades about 0.0 of its potential returns per unit of risk. First Copper Technology is currently generating about -0.14 per unit of risk. If you would invest 3,880 in Thermaltake Technology Co on August 24, 2024 and sell it today you would lose (10.00) from holding Thermaltake Technology Co or give up 0.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thermaltake Technology Co vs. First Copper Technology
Performance |
| Timeline |
| Thermaltake Technology |
| First Copper Technology |
Thermaltake Technology and First Copper Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thermaltake Technology and First Copper
The main advantage of trading using opposite Thermaltake Technology and First Copper positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thermaltake Technology position performs unexpectedly, First Copper 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 First Copper will offset losses from the drop in First Copper's long position.| Thermaltake Technology vs. Quanta Computer | Thermaltake Technology vs. Wiwynn Corp | Thermaltake Technology vs. Getac Technology Corp | Thermaltake Technology vs. InnoDisk |
| First Copper vs. Cheng Shin Rubber | First Copper vs. TSRC Corp | First Copper vs. Taiwan Cement Corp | First Copper vs. China Steel Chemical |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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