Correlation Between CTCI Corp and Sinopac Financial
Can any of the company-specific risk be diversified away by investing in both CTCI Corp and Sinopac Financial 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 Sinopac Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CTCI Corp and Sinopac Financial Holdings, you can compare the effects of market volatilities on CTCI Corp and Sinopac Financial 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 Sinopac Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of CTCI Corp and Sinopac Financial.
Diversification Opportunities for CTCI Corp and Sinopac Financial
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between CTCI and Sinopac is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding CTCI Corp and Sinopac Financial Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinopac Financial 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 Sinopac Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sinopac Financial has no effect on the direction of CTCI Corp i.e., CTCI Corp and Sinopac Financial go up and down completely randomly.
Pair Corralation between CTCI Corp and Sinopac Financial
Assuming the 90 days trading horizon CTCI Corp is expected to under-perform the Sinopac Financial. In addition to that, CTCI Corp is 1.05 times more volatile than Sinopac Financial Holdings. It trades about -0.08 of its total potential returns per unit of risk. Sinopac Financial Holdings is currently generating about 0.01 per unit of volatility. If you would invest 2,325 in Sinopac Financial Holdings on September 1, 2024 and sell it today you would earn a total of 0.00 from holding Sinopac Financial Holdings or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CTCI Corp vs. Sinopac Financial Holdings
Performance |
| Timeline |
| CTCI Corp |
| Sinopac Financial |
CTCI Corp and Sinopac Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CTCI Corp and Sinopac Financial
The main advantage of trading using opposite CTCI Corp and Sinopac Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CTCI Corp position performs unexpectedly, Sinopac Financial 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 Sinopac Financial will offset losses from the drop in Sinopac Financial'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 |
| Sinopac Financial vs. First Financial Holding | Sinopac Financial vs. Taishin Financial Holding | Sinopac Financial vs. CTBC Financial Holding | Sinopac Financial vs. Mega Financial Holding |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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