Correlation Between YuantaP Shares and Tang Eng
Can any of the company-specific risk be diversified away by investing in both YuantaP Shares and Tang Eng 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 Tang Eng 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 Tang Eng Iron, you can compare the effects of market volatilities on YuantaP Shares and Tang Eng 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 Tang Eng. Check out your portfolio center. Please also check ongoing floating volatility patterns of YuantaP Shares and Tang Eng.
Diversification Opportunities for YuantaP Shares and Tang Eng
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between YuantaP and Tang is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding YuantaP shares Taiwan Top and Tang Eng Iron in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tang Eng Iron 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 Tang Eng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tang Eng Iron has no effect on the direction of YuantaP Shares i.e., YuantaP Shares and Tang Eng go up and down completely randomly.
Pair Corralation between YuantaP Shares and Tang Eng
Assuming the 90 days trading horizon YuantaP shares Taiwan Top is expected to generate 2.08 times more return on investment than Tang Eng. However, YuantaP Shares is 2.08 times more volatile than Tang Eng Iron. It trades about 0.11 of its potential returns per unit of risk. Tang Eng Iron is currently generating about -0.02 per unit of risk. If you would invest 13,018 in YuantaP shares Taiwan Top on September 12, 2024 and sell it today you would earn a total of 6,272 from holding YuantaP shares Taiwan Top or generate 48.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 97.94% |
| Values | Daily Returns |
YuantaP shares Taiwan Top vs. Tang Eng Iron
Performance |
| Timeline |
| YuantaP shares Taiwan |
| Tang Eng Iron |
YuantaP Shares and Tang Eng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YuantaP Shares and Tang Eng
The main advantage of trading using opposite YuantaP Shares and Tang Eng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YuantaP Shares position performs unexpectedly, Tang Eng 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 Tang Eng will offset losses from the drop in Tang Eng'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 |
| Tang Eng vs. Jia Jie Biomedical | Tang Eng vs. Mercuries Life Insurance | Tang Eng vs. TWOWAY Communications | Tang Eng vs. Dynamic Medical Technologies |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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