Correlation Between Radient Technologies and CTT Pharmaceutical

Can any of the company-specific risk be diversified away by investing in both Radient Technologies and CTT Pharmaceutical 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 Radient Technologies and CTT Pharmaceutical into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Radient Technologies and CTT Pharmaceutical Holdings, you can compare the effects of market volatilities on Radient Technologies and CTT Pharmaceutical 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 Radient Technologies with a short position of CTT Pharmaceutical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Radient Technologies and CTT Pharmaceutical.

Diversification Opportunities for Radient Technologies and CTT Pharmaceutical

-0.02

Correlation Coefficient

Radient Technologies  CTT Pharmaceutical

Good diversification

The 3 months correlation between Radient and CTT is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Radient Technologies and CTT Pharmaceutical Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CTT Pharmaceutical and Radient Technologies 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 Radient Technologies are associated (or correlated) with CTT Pharmaceutical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CTT Pharmaceutical has no effect on the direction of Radient Technologies i.e., Radient Technologies and CTT Pharmaceutical go up and down completely randomly.

Pair Corralation between Radient Technologies and CTT Pharmaceutical

Assuming the 90 days horizon Radient Technologies is expected to under-perform the CTT Pharmaceutical. But the pink sheet apears to be less risky and, when comparing its historical volatility, Radient Technologies is 2.0 times less risky than CTT Pharmaceutical. The pink sheet trades about -0.12 of its potential returns per unit of risk. The CTT Pharmaceutical Holdings is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  5.70  in CTT Pharmaceutical Holdings on September 15, 2024 and sell it today you would lose (2.00) from holding CTT Pharmaceutical Holdings or give up 35.09% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.46%
Values	Daily Returns

Radient Technologies  vs.  CTT Pharmaceutical Holdings

Radient Technologies

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Radient Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

CTT Pharmaceutical

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in CTT Pharmaceutical Holdings are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite fairly weak basic indicators, CTT Pharmaceutical demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Radient Technologies and CTT Pharmaceutical

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

The idea behind Radient Technologies and CTT Pharmaceutical Holdings 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.