Correlation Between Progate and CTCI Corp
Can any of the company-specific risk be diversified away by investing in both Progate and CTCI Corp 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 Progate and CTCI Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Progate Group and CTCI Corp, you can compare the effects of market volatilities on Progate and CTCI Corp 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 Progate with a short position of CTCI Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Progate and CTCI Corp.
Diversification Opportunities for Progate and CTCI Corp
Poor diversification
The 3 months correlation between Progate and CTCI is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Progate Group and CTCI Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CTCI Corp and Progate 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 Progate Group are associated (or correlated) with CTCI Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CTCI Corp has no effect on the direction of Progate i.e., Progate and CTCI Corp go up and down completely randomly.
Pair Corralation between Progate and CTCI Corp
Assuming the 90 days trading horizon Progate Group is expected to under-perform the CTCI Corp. In addition to that, Progate is 3.14 times more volatile than CTCI Corp. It trades about -0.16 of its total potential returns per unit of risk. CTCI Corp is currently generating about -0.45 per unit of volatility. If you would invest 4,510 in CTCI Corp on August 25, 2024 and sell it today you would lose (390.00) from holding CTCI Corp or give up 8.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Progate Group vs. CTCI Corp
Performance |
| Timeline |
| Progate Group |
| CTCI Corp |
Progate and CTCI Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Progate and CTCI Corp
The main advantage of trading using opposite Progate and CTCI Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Progate position performs unexpectedly, CTCI Corp 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 CTCI Corp will offset losses from the drop in CTCI Corp's long position.| Progate vs. Tai Tung Communication | Progate vs. Kedge Construction Co | Progate vs. Lihtai Construction Enterprise | Progate vs. ReaLy Development Construction |
| CTCI Corp vs. Taiwan Secom Co | CTCI Corp vs. Pou Chen Corp | CTCI Corp vs. Formosa Petrochemical Corp | CTCI Corp vs. Cheng Shin Rubber |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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