Correlation Between YuantaP Shares and Simple Mart
Can any of the company-specific risk be diversified away by investing in both YuantaP Shares and Simple Mart 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 Simple Mart 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 Simple Mart Retail, you can compare the effects of market volatilities on YuantaP Shares and Simple Mart 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 Simple Mart. Check out your portfolio center. Please also check ongoing floating volatility patterns of YuantaP Shares and Simple Mart.
Diversification Opportunities for YuantaP Shares and Simple Mart
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between YuantaP and Simple is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding YuantaP shares Taiwan Top and Simple Mart Retail in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Simple Mart Retail 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 Simple Mart. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Simple Mart Retail has no effect on the direction of YuantaP Shares i.e., YuantaP Shares and Simple Mart go up and down completely randomly.
Pair Corralation between YuantaP Shares and Simple Mart
Assuming the 90 days trading horizon YuantaP shares Taiwan Top is expected to generate 1.01 times more return on investment than Simple Mart. However, YuantaP Shares is 1.01 times more volatile than Simple Mart Retail. It trades about 0.1 of its potential returns per unit of risk. Simple Mart Retail is currently generating about 0.0 per unit of risk. If you would invest 10,782 in YuantaP shares Taiwan Top on August 30, 2024 and sell it today you would earn a total of 7,928 from holding YuantaP shares Taiwan Top or generate 73.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.75% |
| Values | Daily Returns |
YuantaP shares Taiwan Top vs. Simple Mart Retail
Performance |
| Timeline |
| YuantaP shares Taiwan |
| Simple Mart Retail |
YuantaP Shares and Simple Mart Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YuantaP Shares and Simple Mart
The main advantage of trading using opposite YuantaP Shares and Simple Mart positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YuantaP Shares position performs unexpectedly, Simple Mart 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 Simple Mart will offset losses from the drop in Simple Mart's long position.| YuantaP Shares vs. Yuanta Daily Taiwan | YuantaP Shares vs. Symtek Automation Asia | YuantaP Shares vs. CTCI Corp | YuantaP Shares vs. Information Technology Total |
| Simple Mart vs. Taiwan Semiconductor Manufacturing | Simple Mart vs. Hon Hai Precision | Simple Mart vs. MediaTek | Simple Mart vs. Chunghwa Telecom Co |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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