Correlation Between CTS and MAXCLEAN HOLDINGS
Can any of the company-specific risk be diversified away by investing in both CTS and MAXCLEAN HOLDINGS 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 CTS and MAXCLEAN HOLDINGS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CTS Corporation and MAXCLEAN HOLDINGS LTD, you can compare the effects of market volatilities on CTS and MAXCLEAN HOLDINGS 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 CTS with a short position of MAXCLEAN HOLDINGS. Check out your portfolio center. Please also check ongoing floating volatility patterns of CTS and MAXCLEAN HOLDINGS.
Diversification Opportunities for CTS and MAXCLEAN HOLDINGS
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CTS and MAXCLEAN is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CTS Corp. and MAXCLEAN HOLDINGS LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MAXCLEAN HOLDINGS LTD and CTS 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 CTS Corporation are associated (or correlated) with MAXCLEAN HOLDINGS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MAXCLEAN HOLDINGS LTD has no effect on the direction of CTS i.e., CTS and MAXCLEAN HOLDINGS go up and down completely randomly.
Pair Corralation between CTS and MAXCLEAN HOLDINGS
If you would invest (100.00) in MAXCLEAN HOLDINGS LTD on October 24, 2024 and sell it today you would earn a total of 100.00 from holding MAXCLEAN HOLDINGS LTD or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
CTS Corp. vs. MAXCLEAN HOLDINGS LTD
Performance |
| Timeline |
| CTS Corporation |
| MAXCLEAN HOLDINGS LTD |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
CTS and MAXCLEAN HOLDINGS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CTS and MAXCLEAN HOLDINGS
The main advantage of trading using opposite CTS and MAXCLEAN HOLDINGS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CTS position performs unexpectedly, MAXCLEAN HOLDINGS 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 MAXCLEAN HOLDINGS will offset losses from the drop in MAXCLEAN HOLDINGS's long position.The idea behind CTS Corporation and MAXCLEAN HOLDINGS LTD pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| MAXCLEAN HOLDINGS vs. Arrow Electronics | MAXCLEAN HOLDINGS vs. Franklin Wireless Corp | MAXCLEAN HOLDINGS vs. CTS Corporation | MAXCLEAN HOLDINGS vs. Vishay Precision Group |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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