Correlation Between CTBC Financial and Brogent Technologies
Can any of the company-specific risk be diversified away by investing in both CTBC Financial and Brogent Technologies 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 CTBC Financial and Brogent Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CTBC Financial Holding and Brogent Technologies, you can compare the effects of market volatilities on CTBC Financial and Brogent Technologies 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 CTBC Financial with a short position of Brogent Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of CTBC Financial and Brogent Technologies.
Diversification Opportunities for CTBC Financial and Brogent Technologies
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CTBC and Brogent is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding CTBC Financial Holding and Brogent Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brogent Technologies and CTBC Financial 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 CTBC Financial Holding are associated (or correlated) with Brogent Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brogent Technologies has no effect on the direction of CTBC Financial i.e., CTBC Financial and Brogent Technologies go up and down completely randomly.
Pair Corralation between CTBC Financial and Brogent Technologies
Assuming the 90 days trading horizon CTBC Financial Holding is expected to generate 0.07 times more return on investment than Brogent Technologies. However, CTBC Financial Holding is 14.97 times less risky than Brogent Technologies. It trades about 0.38 of its potential returns per unit of risk. Brogent Technologies is currently generating about -0.19 per unit of risk. If you would invest 6,070 in CTBC Financial Holding on October 27, 2024 and sell it today you would earn a total of 210.00 from holding CTBC Financial Holding or generate 3.46% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
CTBC Financial Holding vs. Brogent Technologies
Performance |
Timeline |
CTBC Financial Holding |
Brogent Technologies |
CTBC Financial and Brogent Technologies Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with CTBC Financial and Brogent Technologies
The main advantage of trading using opposite CTBC Financial and Brogent Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CTBC Financial position performs unexpectedly, Brogent Technologies 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 Brogent Technologies will offset losses from the drop in Brogent Technologies' long position.CTBC Financial vs. uPI Semiconductor Corp | ||
CTBC Financial vs. Orient Semiconductor Electronics | ||
CTBC Financial vs. Chailease Holding Co | ||
CTBC Financial vs. Camellia Metal Co |
Brogent Technologies vs. Highwealth Construction Corp | ||
Brogent Technologies vs. BenQ Medical Technology | ||
Brogent Technologies vs. Kao Fong Machinery | ||
Brogent Technologies vs. Formosan Rubber 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
Commodity Directory Find actively traded commodities issued by global exchanges | |
Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |