Correlation Between YuantaP Shares and Fubon FTSE
Can any of the company-specific risk be diversified away by investing in both YuantaP Shares and Fubon FTSE 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 YuantaP Shares and Fubon FTSE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between YuantaP shares Taiwan Top and Fubon FTSE Vietnam, you can compare the effects of market volatilities on YuantaP Shares and Fubon FTSE 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 YuantaP Shares with a short position of Fubon FTSE. Check out your portfolio center. Please also check ongoing floating volatility patterns of YuantaP Shares and Fubon FTSE.
Diversification Opportunities for YuantaP Shares and Fubon FTSE
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between YuantaP and Fubon is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding YuantaP shares Taiwan Top and Fubon FTSE Vietnam in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fubon FTSE Vietnam and YuantaP Shares 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 YuantaP shares Taiwan Top are associated (or correlated) with Fubon FTSE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fubon FTSE Vietnam has no effect on the direction of YuantaP Shares i.e., YuantaP Shares and Fubon FTSE go up and down completely randomly.
Pair Corralation between YuantaP Shares and Fubon FTSE
Assuming the 90 days trading horizon YuantaP shares Taiwan Top is expected to generate 1.37 times more return on investment than Fubon FTSE. However, YuantaP Shares is 1.37 times more volatile than Fubon FTSE Vietnam. It trades about -0.14 of its potential returns per unit of risk. Fubon FTSE Vietnam is currently generating about -0.22 per unit of risk. If you would invest 19,600 in YuantaP shares Taiwan Top on August 24, 2024 and sell it today you would lose (665.00) from holding YuantaP shares Taiwan Top or give up 3.39% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
YuantaP shares Taiwan Top vs. Fubon FTSE Vietnam
Performance |
| Timeline |
| YuantaP shares Taiwan |
| Fubon FTSE Vietnam |
YuantaP Shares and Fubon FTSE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YuantaP Shares and Fubon FTSE
The main advantage of trading using opposite YuantaP Shares and Fubon FTSE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YuantaP Shares position performs unexpectedly, Fubon FTSE 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 Fubon FTSE will offset losses from the drop in Fubon FTSE's long position.| YuantaP Shares vs. YuantaP shares MSCI Taiwan | YuantaP Shares vs. YuantaP shares Taiwan GreTai | YuantaP Shares vs. YuantaP shares SSE50 | YuantaP Shares vs. YuantaP shares Taiwan Mid Cap |
| Fubon FTSE vs. YuantaP shares Taiwan Top | Fubon FTSE vs. Yuanta Daily Taiwan | Fubon FTSE vs. Cathay Taiwan 5G | Fubon FTSE vs. Yuanta Daily CSI |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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