Correlation Between YuantaP Shares and Charoen Pokphand
Can any of the company-specific risk be diversified away by investing in both YuantaP Shares and Charoen Pokphand 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 Charoen Pokphand 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 Charoen Pokphand Enterprise, you can compare the effects of market volatilities on YuantaP Shares and Charoen Pokphand 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 Charoen Pokphand. Check out your portfolio center. Please also check ongoing floating volatility patterns of YuantaP Shares and Charoen Pokphand.
Diversification Opportunities for YuantaP Shares and Charoen Pokphand
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between YuantaP and Charoen is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding YuantaP shares Taiwan Top and Charoen Pokphand Enterprise in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Charoen Pokphand Ent 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 Charoen Pokphand. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Charoen Pokphand Ent has no effect on the direction of YuantaP Shares i.e., YuantaP Shares and Charoen Pokphand go up and down completely randomly.
Pair Corralation between YuantaP Shares and Charoen Pokphand
Assuming the 90 days trading horizon YuantaP shares Taiwan Top is expected to generate 1.58 times more return on investment than Charoen Pokphand. However, YuantaP Shares is 1.58 times more volatile than Charoen Pokphand Enterprise. It trades about 0.06 of its potential returns per unit of risk. Charoen Pokphand Enterprise is currently generating about -0.07 per unit of risk. If you would invest 17,656 in YuantaP shares Taiwan Top on October 22, 2024 and sell it today you would earn a total of 1,974 from holding YuantaP shares Taiwan Top or generate 11.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 96.03% |
| Values | Daily Returns |
YuantaP shares Taiwan Top vs. Charoen Pokphand Enterprise
Performance |
| Timeline |
| YuantaP shares Taiwan |
| Charoen Pokphand Ent |
YuantaP Shares and Charoen Pokphand Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YuantaP Shares and Charoen Pokphand
The main advantage of trading using opposite YuantaP Shares and Charoen Pokphand positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YuantaP Shares position performs unexpectedly, Charoen Pokphand 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 Charoen Pokphand will offset losses from the drop in Charoen Pokphand'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 |
| Charoen Pokphand vs. Great Wall Enterprise | Charoen Pokphand vs. TTET Union Corp | Charoen Pokphand vs. Uni President Enterprises Corp | Charoen Pokphand vs. Lien Hwa Industrial |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Global Correlations Find global opportunities by holding instruments from different markets |