Correlation Between CTCI Corp and Century Wind
Can any of the company-specific risk be diversified away by investing in both CTCI Corp and Century Wind 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 Century Wind into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CTCI Corp and Century Wind Power, you can compare the effects of market volatilities on CTCI Corp and Century Wind 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 Century Wind. Check out your portfolio center. Please also check ongoing floating volatility patterns of CTCI Corp and Century Wind.
Diversification Opportunities for CTCI Corp and Century Wind
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between CTCI and Century is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding CTCI Corp and Century Wind Power in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Century Wind Power 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 Century Wind. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Century Wind Power has no effect on the direction of CTCI Corp i.e., CTCI Corp and Century Wind go up and down completely randomly.
Pair Corralation between CTCI Corp and Century Wind
Assuming the 90 days trading horizon CTCI Corp is expected to under-perform the Century Wind. But the stock apears to be less risky and, when comparing its historical volatility, CTCI Corp is 1.17 times less risky than Century Wind. The stock trades about -0.39 of its potential returns per unit of risk. The Century Wind Power is currently generating about -0.21 of returns per unit of risk over similar time horizon. If you would invest 33,150 in Century Wind Power on August 30, 2024 and sell it today you would lose (3,050) from holding Century Wind Power or give up 9.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
CTCI Corp vs. Century Wind Power
Performance |
| Timeline |
| CTCI Corp |
| Century Wind Power |
CTCI Corp and Century Wind Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CTCI Corp and Century Wind
The main advantage of trading using opposite CTCI Corp and Century Wind positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CTCI Corp position performs unexpectedly, Century Wind 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 Century Wind will offset losses from the drop in Century Wind'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 |
| Century Wind vs. Ruentex Development Co | Century Wind vs. United Integrated Services | Century Wind vs. CTCI Corp | Century Wind vs. Ruentex Engineering Construction |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |