Correlation Between CTCI Corp and An Shin
Can any of the company-specific risk be diversified away by investing in both CTCI Corp and An Shin 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 An Shin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CTCI Corp and An Shin Food Services, you can compare the effects of market volatilities on CTCI Corp and An Shin 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 An Shin. Check out your portfolio center. Please also check ongoing floating volatility patterns of CTCI Corp and An Shin.
Diversification Opportunities for CTCI Corp and An Shin
Almost no diversification
The 3 months correlation between CTCI and 1259 is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding CTCI Corp and An Shin Food Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on An Shin Food 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 An Shin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of An Shin Food has no effect on the direction of CTCI Corp i.e., CTCI Corp and An Shin go up and down completely randomly.
Pair Corralation between CTCI Corp and An Shin
Assuming the 90 days trading horizon CTCI Corp is expected to under-perform the An Shin. In addition to that, CTCI Corp is 1.33 times more volatile than An Shin Food Services. It trades about -0.2 of its total potential returns per unit of risk. An Shin Food Services is currently generating about -0.1 per unit of volatility. If you would invest 6,600 in An Shin Food Services on September 10, 2024 and sell it today you would lose (90.00) from holding An Shin Food Services or give up 1.36% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
CTCI Corp vs. An Shin Food Services
Performance |
Timeline |
CTCI Corp |
An Shin Food |
CTCI Corp and An Shin Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with CTCI Corp and An Shin
The main advantage of trading using opposite CTCI Corp and An Shin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CTCI Corp position performs unexpectedly, An Shin 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 An Shin will offset losses from the drop in An Shin's long position.CTCI Corp vs. Taiwan Secom Co | CTCI Corp vs. Pou Chen Corp | CTCI Corp vs. Formosa Petrochemical Corp | CTCI Corp vs. Cheng Shin Rubber |
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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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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