Correlation Between CTCI Corp and Fubon MSCI
Can any of the company-specific risk be diversified away by investing in both CTCI Corp and Fubon MSCI 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 CTCI Corp and Fubon MSCI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CTCI Corp and Fubon MSCI Taiwan, you can compare the effects of market volatilities on CTCI Corp and Fubon MSCI 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 CTCI Corp with a short position of Fubon MSCI. Check out your portfolio center. Please also check ongoing floating volatility patterns of CTCI Corp and Fubon MSCI.
Diversification Opportunities for CTCI Corp and Fubon MSCI
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between CTCI and Fubon is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding CTCI Corp and Fubon MSCI Taiwan in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fubon MSCI Taiwan and CTCI 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 CTCI Corp are associated (or correlated) with Fubon MSCI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fubon MSCI Taiwan has no effect on the direction of CTCI Corp i.e., CTCI Corp and Fubon MSCI go up and down completely randomly.
Pair Corralation between CTCI Corp and Fubon MSCI
Assuming the 90 days trading horizon CTCI Corp is expected to generate 63.28 times less return on investment than Fubon MSCI. In addition to that, CTCI Corp is 1.02 times more volatile than Fubon MSCI Taiwan. It trades about 0.0 of its total potential returns per unit of risk. Fubon MSCI Taiwan is currently generating about 0.09 per unit of volatility. If you would invest 9,365 in Fubon MSCI Taiwan on September 2, 2024 and sell it today you would earn a total of 4,400 from holding Fubon MSCI Taiwan or generate 46.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CTCI Corp vs. Fubon MSCI Taiwan
Performance |
| Timeline |
| CTCI Corp |
| Fubon MSCI Taiwan |
CTCI Corp and Fubon MSCI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CTCI Corp and Fubon MSCI
The main advantage of trading using opposite CTCI Corp and Fubon MSCI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CTCI Corp position performs unexpectedly, Fubon MSCI 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 Fubon MSCI will offset losses from the drop in Fubon MSCI's long position.| CTCI Corp vs. Taiwan Secom Co | CTCI Corp vs. Pou Chen Corp | CTCI Corp vs. Formosa Petrochemical Corp | CTCI Corp vs. Cheng Shin Rubber |
| Fubon MSCI vs. Yuanta Daily Taiwan | Fubon MSCI vs. Yuanta Daily CSI | Fubon MSCI vs. Fubon FTSE Vietnam | Fubon MSCI vs. Fuh Hwa Emerging |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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