Correlation Between CTBC Financial and Brogent Technologies

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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

CTBCBrogentDiversified AwayCTBCBrogentDiversified Away100%
-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 Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

CTBC Financial Holding  vs.  Brogent Technologies

 Performance 
JavaScript chart by amCharts 3.21.15NovDec2025 -25-20-15-10-50
JavaScript chart by amCharts 3.21.152891B 5263
       Timeline  
CTBC Financial Holding 

Risk-Adjusted Performance

29 of 100

 
Weak
 
Strong
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in CTBC Financial Holding are ranked lower than 29 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, CTBC Financial is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan60.56161.56262.5
Brogent Technologies 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Brogent Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of abnormal performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in February 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan140150160170180

CTBC Financial and Brogent Technologies Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-0.31-0.11-0.0681-0.0341-0.0017030.03870.07740.180.380.58 5101520
JavaScript chart by amCharts 3.21.152891B 5263
       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.
The idea behind CTBC Financial Holding and Brogent Technologies 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.
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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.

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