Correlation Between YuantaP Shares and Li Peng
Can any of the company-specific risk be diversified away by investing in both YuantaP Shares and Li Peng 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 Li Peng 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 Li Peng Enterprise, you can compare the effects of market volatilities on YuantaP Shares and Li Peng 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 Li Peng. Check out your portfolio center. Please also check ongoing floating volatility patterns of YuantaP Shares and Li Peng.
Diversification Opportunities for YuantaP Shares and Li Peng
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between YuantaP and 1447 is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding YuantaP shares Taiwan Top and Li Peng Enterprise in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Li Peng Enterprise 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 Li Peng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Li Peng Enterprise has no effect on the direction of YuantaP Shares i.e., YuantaP Shares and Li Peng go up and down completely randomly.
Pair Corralation between YuantaP Shares and Li Peng
Assuming the 90 days trading horizon YuantaP shares Taiwan Top is expected to generate 0.81 times more return on investment than Li Peng. However, YuantaP shares Taiwan Top is 1.23 times less risky than Li Peng. It trades about 0.09 of its potential returns per unit of risk. Li Peng Enterprise is currently generating about 0.0 per unit of risk. If you would invest 12,246 in YuantaP shares Taiwan Top on September 1, 2024 and sell it today you would earn a total of 6,479 from holding YuantaP shares Taiwan Top or generate 52.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 98.36% |
| Values | Daily Returns |
YuantaP shares Taiwan Top vs. Li Peng Enterprise
Performance |
| Timeline |
| YuantaP shares Taiwan |
| Li Peng Enterprise |
YuantaP Shares and Li Peng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YuantaP Shares and Li Peng
The main advantage of trading using opposite YuantaP Shares and Li Peng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YuantaP Shares position performs unexpectedly, Li Peng 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 Li Peng will offset losses from the drop in Li Peng's long position.| YuantaP Shares vs. Yuanta Daily Taiwan | YuantaP Shares vs. Cathay Taiwan 5G | YuantaP Shares vs. Yuanta Daily CSI | YuantaP Shares vs. Fubon FTSE Vietnam |
| Li Peng vs. GeneFerm Biotechnology Co | Li Peng vs. Tang Eng Iron | Li Peng vs. GeneReach Biotechnology | Li Peng vs. Tung Ho Steel |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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