Correlation Between CTCI Corp and Thunder Tiger
Can any of the company-specific risk be diversified away by investing in both CTCI Corp and Thunder Tiger 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 Thunder Tiger into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CTCI Corp and Thunder Tiger Corp, you can compare the effects of market volatilities on CTCI Corp and Thunder Tiger 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 Thunder Tiger. Check out your portfolio center. Please also check ongoing floating volatility patterns of CTCI Corp and Thunder Tiger.
Diversification Opportunities for CTCI Corp and Thunder Tiger
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between CTCI and Thunder is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding CTCI Corp and Thunder Tiger Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thunder Tiger Corp 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 Thunder Tiger. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thunder Tiger Corp has no effect on the direction of CTCI Corp i.e., CTCI Corp and Thunder Tiger go up and down completely randomly.
Pair Corralation between CTCI Corp and Thunder Tiger
Assuming the 90 days trading horizon CTCI Corp is expected to under-perform the Thunder Tiger. But the stock apears to be less risky and, when comparing its historical volatility, CTCI Corp is 3.03 times less risky than Thunder Tiger. The stock trades about -0.02 of its potential returns per unit of risk. The Thunder Tiger Corp is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 6,110 in Thunder Tiger Corp on October 25, 2024 and sell it today you would earn a total of 750.00 from holding Thunder Tiger Corp or generate 12.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CTCI Corp vs. Thunder Tiger Corp
Performance |
| Timeline |
| CTCI Corp |
| Thunder Tiger Corp |
CTCI Corp and Thunder Tiger Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CTCI Corp and Thunder Tiger
The main advantage of trading using opposite CTCI Corp and Thunder Tiger positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CTCI Corp position performs unexpectedly, Thunder Tiger 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 Thunder Tiger will offset losses from the drop in Thunder Tiger'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 |
| Thunder Tiger vs. Gloria Material Technology | Thunder Tiger vs. Ton Yi Industrial | Thunder Tiger vs. Acbel Polytech | Thunder Tiger vs. Sincere Navigation 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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