Taiwan Business Correlations
| 2834 Stock | TWD 15.05 0.05 0.33% |
The current 90-days correlation between Taiwan Business Bank and Chang Hwa Commercial is 0.37 (i.e., Weak diversification). The correlation of Taiwan Business is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak. If the correlation is 0, the equities are not correlated; they are entirely random.
Taiwan Business Correlation With Market
Good diversification
The correlation between Taiwan Business Bank and DJI is -0.04 (i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Taiwan Business Bank and DJI in the same portfolio, assuming nothing else is changed.
Taiwan |
The ability to find closely correlated positions to Taiwan Business could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Taiwan Business when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Taiwan Business - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Taiwan Business Bank to buy it.
Moving together with Taiwan Stock
| 0.7 | 2317 | Hon Hai Precision | PairCorr |
| 0.78 | 6505 | Formosa Petrochemical | PairCorr |
| 0.78 | 2303 | United Microelectronics | PairCorr |
| 0.68 | 1303 | Nan Ya Plastics | PairCorr |
| 0.72 | 1301 | Formosa Plastics Corp | PairCorr |
| 0.79 | 0051 | YuantaP shares Taiwan | PairCorr |
Moving against Taiwan Stock
Related Correlations Analysis
| 0.66 | 0.44 | 0.63 | 0.66 | 2892 | ||
| 0.66 | 0.06 | 0.54 | 0.78 | 2801 | ||
| 0.44 | 0.06 | 0.33 | 0.21 | 2890 | ||
| 0.63 | 0.54 | 0.33 | 0.55 | 2887 | ||
| 0.66 | 0.78 | 0.21 | 0.55 | 2880 | ||
| Click cells to compare fundamentals | Check Volatility | Backtest Portfolio |
Risk-Adjusted Indicators
There is a big difference between Taiwan Stock performing well and Taiwan Business Company doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze Taiwan Business' multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.| Mean Deviation | Jensen Alpha | Sortino Ratio | Treynor Ratio | Semi Deviation | Expected Shortfall | Potential Upside | Value @Risk | Maximum Drawdown | ||
|---|---|---|---|---|---|---|---|---|---|---|
| 2892 | 0.65 | 0.02 | (0.10) | (0.07) | 0.69 | 1.46 | 5.62 | |||
| 2801 | 0.46 | 0.02 | (0.09) | 0.78 | 0.51 | 0.85 | 3.34 | |||
| 2890 | 0.84 | (0.05) | 0.00 | 0.32 | 0.00 | 1.95 | 6.96 | |||
| 2887 | 0.76 | 0.01 | (0.09) | 0.04 | 0.86 | 1.75 | 6.25 | |||
| 2880 | 0.84 | 0.13 | 0.02 | (0.42) | 0.74 | 2.24 | 5.03 |
Taiwan Business Related Equities
One of the popular trading techniques among algorithmic traders is to use market-neutral strategies where every trade hedges away some risk. Because there are two separate transactions required, even if one position performs unexpectedly, the other equity can make up some of the losses. Below are some of the equities that can be combined with Taiwan Business stock to make a market-neutral strategy. Peer analysis of Taiwan Business could also be used in its relative valuation, which is a method of valuing Taiwan Business by comparing valuation metrics with similar companies.
| Risk & Return | Correlation |