Correlation Between Phytohealth Corp and CTBC Financial
Can any of the company-specific risk be diversified away by investing in both Phytohealth Corp and CTBC Financial 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 Phytohealth Corp and CTBC Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Phytohealth Corp and CTBC Financial Holding, you can compare the effects of market volatilities on Phytohealth Corp and CTBC Financial 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 Phytohealth Corp with a short position of CTBC Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Phytohealth Corp and CTBC Financial.
Diversification Opportunities for Phytohealth Corp and CTBC Financial
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Phytohealth and CTBC is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Phytohealth Corp and CTBC Financial Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CTBC Financial Holding and Phytohealth Corp 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 Phytohealth Corp are associated (or correlated) with CTBC Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CTBC Financial Holding has no effect on the direction of Phytohealth Corp i.e., Phytohealth Corp and CTBC Financial go up and down completely randomly.
Pair Corralation between Phytohealth Corp and CTBC Financial
Assuming the 90 days trading horizon Phytohealth Corp is expected to generate 6.29 times more return on investment than CTBC Financial. However, Phytohealth Corp is 6.29 times more volatile than CTBC Financial Holding. It trades about 0.09 of its potential returns per unit of risk. CTBC Financial Holding is currently generating about 0.47 per unit of risk. If you would invest 1,585 in Phytohealth Corp on October 24, 2024 and sell it today you would earn a total of 55.00 from holding Phytohealth Corp or generate 3.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Phytohealth Corp vs. CTBC Financial Holding
Performance |
| Timeline |
| Phytohealth Corp |
| CTBC Financial Holding |
Phytohealth Corp and CTBC Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Phytohealth Corp and CTBC Financial
The main advantage of trading using opposite Phytohealth Corp and CTBC Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Phytohealth Corp position performs unexpectedly, CTBC Financial 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 CTBC Financial will offset losses from the drop in CTBC Financial's long position.| Phytohealth Corp vs. CHC Healthcare Group | Phytohealth Corp vs. GenMont Biotech | Phytohealth Corp vs. Sinphar Pharmaceutical Co | Phytohealth Corp vs. Abnova Taiwan Corp |
| CTBC Financial vs. Healthconn Corp | CTBC Financial vs. Feng Ching Metal | CTBC Financial vs. Power Wind Health | CTBC Financial vs. Phytohealth 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |