Correlation Between CTCI Corp and Fuh Hwa
Can any of the company-specific risk be diversified away by investing in both CTCI Corp and Fuh Hwa 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 Fuh Hwa into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CTCI Corp and Fuh Hwa Emerging, you can compare the effects of market volatilities on CTCI Corp and Fuh Hwa 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 Fuh Hwa. Check out your portfolio center. Please also check ongoing floating volatility patterns of CTCI Corp and Fuh Hwa.
Diversification Opportunities for CTCI Corp and Fuh Hwa
Very poor diversification
The 3 months correlation between CTCI and Fuh is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding CTCI Corp and Fuh Hwa Emerging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fuh Hwa Emerging 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 Fuh Hwa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fuh Hwa Emerging has no effect on the direction of CTCI Corp i.e., CTCI Corp and Fuh Hwa go up and down completely randomly.
Pair Corralation between CTCI Corp and Fuh Hwa
Assuming the 90 days trading horizon CTCI Corp is expected to under-perform the Fuh Hwa. In addition to that, CTCI Corp is 3.34 times more volatile than Fuh Hwa Emerging. It trades about -0.01 of its total potential returns per unit of risk. Fuh Hwa Emerging is currently generating about 0.05 per unit of volatility. If you would invest 1,602 in Fuh Hwa Emerging on September 4, 2024 and sell it today you would earn a total of 77.00 from holding Fuh Hwa Emerging or generate 4.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
CTCI Corp vs. Fuh Hwa Emerging
Performance |
| Timeline |
| CTCI Corp |
| Fuh Hwa Emerging |
CTCI Corp and Fuh Hwa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CTCI Corp and Fuh Hwa
The main advantage of trading using opposite CTCI Corp and Fuh Hwa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CTCI Corp position performs unexpectedly, Fuh Hwa 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 Fuh Hwa will offset losses from the drop in Fuh Hwa'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 |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |