Correlation Between Catcher Technology and Lite On
Can any of the company-specific risk be diversified away by investing in both Catcher Technology and Lite On 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 Catcher Technology and Lite On into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Catcher Technology Co and Lite On Technology Corp, you can compare the effects of market volatilities on Catcher Technology and Lite On 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 Catcher Technology with a short position of Lite On. Check out your portfolio center. Please also check ongoing floating volatility patterns of Catcher Technology and Lite On.
Diversification Opportunities for Catcher Technology and Lite On
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Catcher and Lite is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Catcher Technology Co and Lite On Technology Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lite On Technology and Catcher Technology 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 Catcher Technology Co are associated (or correlated) with Lite On. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lite On Technology has no effect on the direction of Catcher Technology i.e., Catcher Technology and Lite On go up and down completely randomly.
Pair Corralation between Catcher Technology and Lite On
Assuming the 90 days trading horizon Catcher Technology Co is expected to under-perform the Lite On. In addition to that, Catcher Technology is 1.07 times more volatile than Lite On Technology Corp. It trades about -0.26 of its total potential returns per unit of risk. Lite On Technology Corp is currently generating about 0.01 per unit of volatility. If you would invest 10,150 in Lite On Technology Corp on September 15, 2024 and sell it today you would earn a total of 50.00 from holding Lite On Technology Corp or generate 0.49% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Catcher Technology Co vs. Lite On Technology Corp
Performance |
Timeline |
Catcher Technology |
Lite On Technology |
Catcher Technology and Lite On Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Catcher Technology and Lite On
The main advantage of trading using opposite Catcher Technology and Lite On positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Catcher Technology position performs unexpectedly, Lite On 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 Lite On will offset losses from the drop in Lite On's long position.Catcher Technology vs. AU Optronics | Catcher Technology vs. Innolux Corp | Catcher Technology vs. Ruentex Development Co | Catcher Technology vs. WiseChip Semiconductor |
Lite On vs. AU Optronics | Lite On vs. Innolux Corp | Lite On vs. Ruentex Development Co | Lite On vs. WiseChip Semiconductor |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
CEOs Directory Screen CEOs from public companies around the world | |
Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |