Correlation Between TTM Technologies and Chuangs China
Can any of the company-specific risk be diversified away by investing in both TTM Technologies and Chuangs China 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 TTM Technologies and Chuangs China into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TTM Technologies and Chuangs China Investments, you can compare the effects of market volatilities on TTM Technologies and Chuangs China 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 TTM Technologies with a short position of Chuangs China. Check out your portfolio center. Please also check ongoing floating volatility patterns of TTM Technologies and Chuangs China.
Diversification Opportunities for TTM Technologies and Chuangs China
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between TTM and Chuangs is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding TTM Technologies and Chuangs China Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chuangs China Investments and TTM Technologies 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 TTM Technologies are associated (or correlated) with Chuangs China. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chuangs China Investments has no effect on the direction of TTM Technologies i.e., TTM Technologies and Chuangs China go up and down completely randomly.
Pair Corralation between TTM Technologies and Chuangs China
Assuming the 90 days horizon TTM Technologies is expected to generate 0.45 times more return on investment than Chuangs China. However, TTM Technologies is 2.22 times less risky than Chuangs China. It trades about 0.05 of its potential returns per unit of risk. Chuangs China Investments is currently generating about -0.01 per unit of risk. If you would invest 1,460 in TTM Technologies on September 5, 2024 and sell it today you would earn a total of 860.00 from holding TTM Technologies or generate 58.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
TTM Technologies vs. Chuangs China Investments
Performance |
| Timeline |
| TTM Technologies |
| Chuangs China Investments |
TTM Technologies and Chuangs China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TTM Technologies and Chuangs China
The main advantage of trading using opposite TTM Technologies and Chuangs China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TTM Technologies position performs unexpectedly, Chuangs China 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 Chuangs China will offset losses from the drop in Chuangs China's long position.| TTM Technologies vs. Chuangs China Investments | TTM Technologies vs. Virtus Investment Partners | TTM Technologies vs. AVITA Medical | TTM Technologies vs. Clearside Biomedical |
| Chuangs China vs. Hongkong Land Holdings | Chuangs China vs. Superior Plus Corp | Chuangs China vs. NMI Holdings | Chuangs China vs. Origin Agritech |
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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