Correlation Between YuantaP Shares and Cathay Global
Can any of the company-specific risk be diversified away by investing in both YuantaP Shares and Cathay Global 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 Cathay Global 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 Cathay Global Autonomous, you can compare the effects of market volatilities on YuantaP Shares and Cathay Global 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 Cathay Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of YuantaP Shares and Cathay Global.
Diversification Opportunities for YuantaP Shares and Cathay Global
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between YuantaP and Cathay is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding YuantaP shares Taiwan Top and Cathay Global Autonomous in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cathay Global Autonomous 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 Cathay Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cathay Global Autonomous has no effect on the direction of YuantaP Shares i.e., YuantaP Shares and Cathay Global go up and down completely randomly.
Pair Corralation between YuantaP Shares and Cathay Global
Assuming the 90 days trading horizon YuantaP shares Taiwan Top is expected to generate 0.93 times more return on investment than Cathay Global. However, YuantaP shares Taiwan Top is 1.08 times less risky than Cathay Global. It trades about 0.06 of its potential returns per unit of risk. Cathay Global Autonomous is currently generating about 0.06 per unit of risk. If you would invest 16,600 in YuantaP shares Taiwan Top on September 2, 2024 and sell it today you would earn a total of 2,125 from holding YuantaP shares Taiwan Top or generate 12.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 96.06% |
| Values | Daily Returns |
YuantaP shares Taiwan Top vs. Cathay Global Autonomous
Performance |
| Timeline |
| YuantaP shares Taiwan |
| Cathay Global Autonomous |
YuantaP Shares and Cathay Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YuantaP Shares and Cathay Global
The main advantage of trading using opposite YuantaP Shares and Cathay Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YuantaP Shares position performs unexpectedly, Cathay Global 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 Cathay Global will offset losses from the drop in Cathay Global'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 |
| Cathay Global vs. YuantaP shares Taiwan Top | Cathay Global vs. Yuanta Daily Taiwan | Cathay Global vs. Cathay Taiwan 5G | Cathay Global 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |