Correlation Between CTCI Corp and Cathay Taiwan
Can any of the company-specific risk be diversified away by investing in both CTCI Corp and Cathay Taiwan 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 Cathay Taiwan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CTCI Corp and Cathay Taiwan 5G, you can compare the effects of market volatilities on CTCI Corp and Cathay Taiwan 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 Cathay Taiwan. Check out your portfolio center. Please also check ongoing floating volatility patterns of CTCI Corp and Cathay Taiwan.
Diversification Opportunities for CTCI Corp and Cathay Taiwan
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CTCI and Cathay is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding CTCI Corp and Cathay Taiwan 5G in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cathay Taiwan 5G 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 Cathay Taiwan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cathay Taiwan 5G has no effect on the direction of CTCI Corp i.e., CTCI Corp and Cathay Taiwan go up and down completely randomly.
Pair Corralation between CTCI Corp and Cathay Taiwan
Assuming the 90 days trading horizon CTCI Corp is expected to under-perform the Cathay Taiwan. But the stock apears to be less risky and, when comparing its historical volatility, CTCI Corp is 1.33 times less risky than Cathay Taiwan. The stock trades about -0.19 of its potential returns per unit of risk. The Cathay Taiwan 5G is currently generating about -0.09 of returns per unit of risk over similar time horizon. If you would invest 2,531 in Cathay Taiwan 5G on September 12, 2024 and sell it today you would lose (62.00) from holding Cathay Taiwan 5G or give up 2.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CTCI Corp vs. Cathay Taiwan 5G
Performance |
| Timeline |
| CTCI Corp |
| Cathay Taiwan 5G |
CTCI Corp and Cathay Taiwan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CTCI Corp and Cathay Taiwan
The main advantage of trading using opposite CTCI Corp and Cathay Taiwan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CTCI Corp position performs unexpectedly, Cathay Taiwan 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 Cathay Taiwan will offset losses from the drop in Cathay Taiwan'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 |
| Cathay Taiwan vs. YuantaP shares Taiwan Top | Cathay Taiwan vs. Yuanta Daily Taiwan | Cathay Taiwan vs. Yuanta Daily CSI | Cathay Taiwan vs. Cathay Sustainability High |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |