Correlation Between CTCI Corp and StShine Optical
Can any of the company-specific risk be diversified away by investing in both CTCI Corp and StShine Optical 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 StShine Optical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CTCI Corp and StShine Optical Co, you can compare the effects of market volatilities on CTCI Corp and StShine Optical 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 StShine Optical. Check out your portfolio center. Please also check ongoing floating volatility patterns of CTCI Corp and StShine Optical.
Diversification Opportunities for CTCI Corp and StShine Optical
-0.94 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CTCI and StShine is -0.94. Overlapping area represents the amount of risk that can be diversified away by holding CTCI Corp and StShine Optical Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on StShine Optical 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 StShine Optical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of StShine Optical has no effect on the direction of CTCI Corp i.e., CTCI Corp and StShine Optical go up and down completely randomly.
Pair Corralation between CTCI Corp and StShine Optical
Assuming the 90 days trading horizon CTCI Corp is expected to generate 3.3 times less return on investment than StShine Optical. In addition to that, CTCI Corp is 1.04 times more volatile than StShine Optical Co. It trades about 0.01 of its total potential returns per unit of risk. StShine Optical Co is currently generating about 0.05 per unit of volatility. If you would invest 19,036 in StShine Optical Co on August 29, 2024 and sell it today you would earn a total of 3,414 from holding StShine Optical Co or generate 17.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CTCI Corp vs. StShine Optical Co
Performance |
| Timeline |
| CTCI Corp |
| StShine Optical |
CTCI Corp and StShine Optical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CTCI Corp and StShine Optical
The main advantage of trading using opposite CTCI Corp and StShine Optical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CTCI Corp position performs unexpectedly, StShine Optical 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 StShine Optical will offset losses from the drop in StShine Optical'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 |
| StShine Optical vs. Sinphar Pharmaceutical Co | StShine Optical vs. Grape King Bio | StShine Optical vs. Apex Biotechnology Corp | StShine Optical vs. Leatec Fine Ceramics |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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