Correlation Between CTCI Corp and Sinopac TAIEX
Can any of the company-specific risk be diversified away by investing in both CTCI Corp and Sinopac TAIEX 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 Sinopac TAIEX into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CTCI Corp and Sinopac TAIEX ETF, you can compare the effects of market volatilities on CTCI Corp and Sinopac TAIEX 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 Sinopac TAIEX. Check out your portfolio center. Please also check ongoing floating volatility patterns of CTCI Corp and Sinopac TAIEX.
Diversification Opportunities for CTCI Corp and Sinopac TAIEX
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between CTCI and Sinopac is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding CTCI Corp and Sinopac TAIEX ETF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinopac TAIEX ETF 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 Sinopac TAIEX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sinopac TAIEX ETF has no effect on the direction of CTCI Corp i.e., CTCI Corp and Sinopac TAIEX go up and down completely randomly.
Pair Corralation between CTCI Corp and Sinopac TAIEX
Assuming the 90 days trading horizon CTCI Corp is expected to under-perform the Sinopac TAIEX. But the stock apears to be less risky and, when comparing its historical volatility, CTCI Corp is 1.04 times less risky than Sinopac TAIEX. The stock trades about -0.35 of its potential returns per unit of risk. The Sinopac TAIEX ETF is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 11,485 in Sinopac TAIEX ETF on September 4, 2024 and sell it today you would lose (85.00) from holding Sinopac TAIEX ETF or give up 0.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CTCI Corp vs. Sinopac TAIEX ETF
Performance |
| Timeline |
| CTCI Corp |
| Sinopac TAIEX ETF |
CTCI Corp and Sinopac TAIEX Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CTCI Corp and Sinopac TAIEX
The main advantage of trading using opposite CTCI Corp and Sinopac TAIEX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CTCI Corp position performs unexpectedly, Sinopac TAIEX 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 Sinopac TAIEX will offset losses from the drop in Sinopac TAIEX's long position.| CTCI Corp vs. Universal Microelectronics Co | CTCI Corp vs. AVerMedia Technologies | CTCI Corp vs. Symtek Automation Asia | CTCI Corp vs. WiseChip Semiconductor |
| Sinopac TAIEX vs. Cathay Taiwan 5G | Sinopac TAIEX vs. Ruentex Development Co | Sinopac TAIEX vs. Symtek Automation Asia | Sinopac TAIEX vs. CTCI 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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