Correlation Between Catcher Technology and United Radiant
Can any of the company-specific risk be diversified away by investing in both Catcher Technology and United Radiant 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 United Radiant 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 United Radiant Technology, you can compare the effects of market volatilities on Catcher Technology and United Radiant 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 United Radiant. Check out your portfolio center. Please also check ongoing floating volatility patterns of Catcher Technology and United Radiant.
Diversification Opportunities for Catcher Technology and United Radiant
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Catcher and United is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Catcher Technology Co and United Radiant Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on United Radiant 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 United Radiant. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of United Radiant Technology has no effect on the direction of Catcher Technology i.e., Catcher Technology and United Radiant go up and down completely randomly.
Pair Corralation between Catcher Technology and United Radiant
Assuming the 90 days trading horizon Catcher Technology Co is expected to under-perform the United Radiant. But the stock apears to be less risky and, when comparing its historical volatility, Catcher Technology Co is 1.78 times less risky than United Radiant. The stock trades about -0.16 of its potential returns per unit of risk. The United Radiant Technology is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 2,010 in United Radiant Technology on October 26, 2024 and sell it today you would lose (45.00) from holding United Radiant Technology or give up 2.24% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Catcher Technology Co vs. United Radiant Technology
Performance |
Timeline |
Catcher Technology |
United Radiant Technology |
Catcher Technology and United Radiant Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Catcher Technology and United Radiant
The main advantage of trading using opposite Catcher Technology and United Radiant positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Catcher Technology position performs unexpectedly, United Radiant 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 United Radiant will offset losses from the drop in United Radiant's long position.Catcher Technology vs. LARGAN Precision Co | ||
Catcher Technology vs. Delta Electronics | ||
Catcher Technology vs. Quanta Computer | ||
Catcher Technology vs. Pegatron Corp |
United Radiant vs. Advantech Co | ||
United Radiant vs. IEI Integration Corp | ||
United Radiant vs. Flytech Technology Co | ||
United Radiant vs. Ennoconn 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
Insider Screener Find insiders across different sectors to evaluate their impact on performance |