Correlation Between CTCI Corp and Bonny Worldwide
Can any of the company-specific risk be diversified away by investing in both CTCI Corp and Bonny Worldwide 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 Bonny Worldwide into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CTCI Corp and Bonny Worldwide, you can compare the effects of market volatilities on CTCI Corp and Bonny Worldwide 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 Bonny Worldwide. Check out your portfolio center. Please also check ongoing floating volatility patterns of CTCI Corp and Bonny Worldwide.
Diversification Opportunities for CTCI Corp and Bonny Worldwide
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CTCI and Bonny is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding CTCI Corp and Bonny Worldwide in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bonny Worldwide 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 Bonny Worldwide. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bonny Worldwide has no effect on the direction of CTCI Corp i.e., CTCI Corp and Bonny Worldwide go up and down completely randomly.
Pair Corralation between CTCI Corp and Bonny Worldwide
Assuming the 90 days trading horizon CTCI Corp is expected to under-perform the Bonny Worldwide. But the stock apears to be less risky and, when comparing its historical volatility, CTCI Corp is 2.29 times less risky than Bonny Worldwide. The stock trades about -0.01 of its potential returns per unit of risk. The Bonny Worldwide is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 18,450 in Bonny Worldwide on September 1, 2024 and sell it today you would earn a total of 8,700 from holding Bonny Worldwide or generate 47.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CTCI Corp vs. Bonny Worldwide
Performance |
| Timeline |
| CTCI Corp |
| Bonny Worldwide |
CTCI Corp and Bonny Worldwide Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CTCI Corp and Bonny Worldwide
The main advantage of trading using opposite CTCI Corp and Bonny Worldwide positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CTCI Corp position performs unexpectedly, Bonny Worldwide 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 Bonny Worldwide will offset losses from the drop in Bonny Worldwide'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 |
| Bonny Worldwide vs. Paiho Shih Holdings | Bonny Worldwide vs. Thunder Tiger Corp | Bonny Worldwide vs. Feng Tay Enterprises | Bonny Worldwide vs. Sinyi Realty |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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