Correlation Between CTCI Corp and Capital BofA
Specify exactly 2 symbols:
By analyzing existing cross correlation between CTCI Corp and Capital BofA Merrill, you can compare the effects of market volatilities on CTCI Corp and Capital BofA 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 Capital BofA. Check out your portfolio center. Please also check ongoing floating volatility patterns of CTCI Corp and Capital BofA.
Diversification Opportunities for CTCI Corp and Capital BofA
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CTCI and Capital is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding CTCI Corp and Capital BofA Merrill in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Capital BofA Merrill 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 Capital BofA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Capital BofA Merrill has no effect on the direction of CTCI Corp i.e., CTCI Corp and Capital BofA go up and down completely randomly.
Pair Corralation between CTCI Corp and Capital BofA
Assuming the 90 days trading horizon CTCI Corp is expected to under-perform the Capital BofA. In addition to that, CTCI Corp is 1.59 times more volatile than Capital BofA Merrill. It trades about -0.37 of its total potential returns per unit of risk. Capital BofA Merrill is currently generating about 0.41 per unit of volatility. If you would invest 3,808 in Capital BofA Merrill on September 5, 2024 and sell it today you would earn a total of 214.00 from holding Capital BofA Merrill or generate 5.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CTCI Corp vs. Capital BofA Merrill
Performance |
| Timeline |
| CTCI Corp |
| Capital BofA Merrill |
CTCI Corp and Capital BofA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CTCI Corp and Capital BofA
The main advantage of trading using opposite CTCI Corp and Capital BofA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CTCI Corp position performs unexpectedly, Capital BofA 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 Capital BofA will offset losses from the drop in Capital BofA'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 |
| Capital BofA vs. Ruentex Development Co | Capital BofA vs. Symtek Automation Asia | Capital BofA vs. CTCI Corp | Capital BofA vs. Information Technology Total |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |