Correlation Between YuantaP Shares and Newmax Technology
Can any of the company-specific risk be diversified away by investing in both YuantaP Shares and Newmax Technology 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 Newmax Technology 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 Newmax Technology Co, you can compare the effects of market volatilities on YuantaP Shares and Newmax Technology 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 Newmax Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of YuantaP Shares and Newmax Technology.
Diversification Opportunities for YuantaP Shares and Newmax Technology
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between YuantaP and Newmax is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding YuantaP shares Taiwan Top and Newmax Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Newmax Technology 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 Newmax Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Newmax Technology has no effect on the direction of YuantaP Shares i.e., YuantaP Shares and Newmax Technology go up and down completely randomly.
Pair Corralation between YuantaP Shares and Newmax Technology
Assuming the 90 days trading horizon YuantaP shares Taiwan Top is expected to generate 0.79 times more return on investment than Newmax Technology. However, YuantaP shares Taiwan Top is 1.26 times less risky than Newmax Technology. It trades about 0.12 of its potential returns per unit of risk. Newmax Technology Co is currently generating about -0.06 per unit of risk. If you would invest 12,732 in YuantaP shares Taiwan Top on September 14, 2024 and sell it today you would earn a total of 6,798 from holding YuantaP shares Taiwan Top or generate 53.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.11% |
| Values | Daily Returns |
YuantaP shares Taiwan Top vs. Newmax Technology Co
Performance |
| Timeline |
| YuantaP shares Taiwan |
| Newmax Technology |
YuantaP Shares and Newmax Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YuantaP Shares and Newmax Technology
The main advantage of trading using opposite YuantaP Shares and Newmax Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YuantaP Shares position performs unexpectedly, Newmax Technology 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 Newmax Technology will offset losses from the drop in Newmax Technology's long position.| YuantaP Shares vs. Yuanta Daily Taiwan | YuantaP Shares vs. Cathay Taiwan 5G | YuantaP Shares vs. Yuanta Daily CSI | YuantaP Shares vs. Cathay Sustainability High |
| Newmax Technology vs. Genius Electronic Optical | Newmax Technology vs. Asia Optical Co | Newmax Technology vs. LARGAN Precision Co | Newmax Technology vs. Sino American Silicon Products |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Stocks Directory Find actively traded stocks across global markets |