Correlation Between CTCI Corp and Grand Ocean
Can any of the company-specific risk be diversified away by investing in both CTCI Corp and Grand Ocean 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 Grand Ocean into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CTCI Corp and Grand Ocean Retail, you can compare the effects of market volatilities on CTCI Corp and Grand Ocean 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 Grand Ocean. Check out your portfolio center. Please also check ongoing floating volatility patterns of CTCI Corp and Grand Ocean.
Diversification Opportunities for CTCI Corp and Grand Ocean
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CTCI and Grand is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding CTCI Corp and Grand Ocean Retail in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grand Ocean Retail 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 Grand Ocean. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grand Ocean Retail has no effect on the direction of CTCI Corp i.e., CTCI Corp and Grand Ocean go up and down completely randomly.
Pair Corralation between CTCI Corp and Grand Ocean
Assuming the 90 days trading horizon CTCI Corp is expected to generate 0.53 times more return on investment than Grand Ocean. However, CTCI Corp is 1.88 times less risky than Grand Ocean. It trades about -0.01 of its potential returns per unit of risk. Grand Ocean Retail is currently generating about -0.04 per unit of risk. If you would invest 4,290 in CTCI Corp on October 9, 2024 and sell it today you would lose (325.00) from holding CTCI Corp or give up 7.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CTCI Corp vs. Grand Ocean Retail
Performance |
| Timeline |
| CTCI Corp |
| Grand Ocean Retail |
CTCI Corp and Grand Ocean Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CTCI Corp and Grand Ocean
The main advantage of trading using opposite CTCI Corp and Grand Ocean positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CTCI Corp position performs unexpectedly, Grand Ocean 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 Grand Ocean will offset losses from the drop in Grand Ocean'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 |
| Grand Ocean vs. Ruentex Development Co | Grand Ocean vs. WiseChip Semiconductor | Grand Ocean vs. Leader Electronics | Grand Ocean vs. CTCI Corp |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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