Correlation Between CTCI Corp and Yuanta Daily

Can any of the company-specific risk be diversified away by investing in both CTCI Corp and Yuanta Daily 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 CTCI Corp and Yuanta Daily into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between CTCI Corp and Yuanta Daily Taiwan, you can compare the effects of market volatilities on CTCI Corp and Yuanta Daily 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 CTCI Corp with a short position of Yuanta Daily. Check out your portfolio center. Please also check ongoing floating volatility patterns of CTCI Corp and Yuanta Daily.

Diversification Opportunities for CTCI Corp and Yuanta Daily

-0.43

Correlation Coefficient

CTCI Corp  Yuanta Daily

Very good diversification

The 3 months correlation between CTCI and Yuanta is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding CTCI Corp and Yuanta Daily Taiwan in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yuanta Daily Taiwan and CTCI Corp 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 CTCI Corp are associated (or correlated) with Yuanta Daily. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yuanta Daily Taiwan has no effect on the direction of CTCI Corp i.e., CTCI Corp and Yuanta Daily go up and down completely randomly.

Pair Corralation between CTCI Corp and Yuanta Daily

Assuming the 90 days trading horizon CTCI Corp is expected to under-perform the Yuanta Daily. But the stock apears to be less risky and, when comparing its historical volatility, CTCI Corp is 90.33 times less risky than Yuanta Daily. The stock trades about -0.37 of its potential returns per unit of risk. The Yuanta Daily Taiwan is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest  350.00  in Yuanta Daily Taiwan on September 12, 2024 and sell it today you would earn a total of  1,946  from holding Yuanta Daily Taiwan or generate 556.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

CTCI Corp  vs.  Yuanta Daily Taiwan

CTCI Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days CTCI Corp 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 January 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Yuanta Daily Taiwan

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Yuanta Daily Taiwan are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite somewhat abnormal basic indicators, Yuanta Daily sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with CTCI Corp and Yuanta Daily

The main advantage of trading using opposite CTCI Corp and Yuanta Daily positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CTCI Corp position performs unexpectedly, Yuanta Daily 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 Yuanta Daily will offset losses from the drop in Yuanta Daily's long position.

The idea behind CTCI Corp and Yuanta Daily Taiwan 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..