Correlation Between YuantaP Shares and Roo Hsing
Can any of the company-specific risk be diversified away by investing in both YuantaP Shares and Roo Hsing 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 Roo Hsing 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 Roo Hsing Co, you can compare the effects of market volatilities on YuantaP Shares and Roo Hsing 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 Roo Hsing. Check out your portfolio center. Please also check ongoing floating volatility patterns of YuantaP Shares and Roo Hsing.
Diversification Opportunities for YuantaP Shares and Roo Hsing
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between YuantaP and Roo is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding YuantaP shares Taiwan Top and Roo Hsing Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Roo Hsing 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 Roo Hsing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Roo Hsing has no effect on the direction of YuantaP Shares i.e., YuantaP Shares and Roo Hsing go up and down completely randomly.
Pair Corralation between YuantaP Shares and Roo Hsing
Assuming the 90 days trading horizon YuantaP shares Taiwan Top is expected to generate 0.77 times more return on investment than Roo Hsing. However, YuantaP shares Taiwan Top is 1.3 times less risky than Roo Hsing. It trades about 0.06 of its potential returns per unit of risk. Roo Hsing Co is currently generating about 0.02 per unit of risk. If you would invest 16,600 in YuantaP shares Taiwan Top on September 2, 2024 and sell it today you would earn a total of 2,125 from holding YuantaP shares Taiwan Top or generate 12.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 96.06% |
| Values | Daily Returns |
YuantaP shares Taiwan Top vs. Roo Hsing Co
Performance |
| Timeline |
| YuantaP shares Taiwan |
| Roo Hsing |
YuantaP Shares and Roo Hsing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YuantaP Shares and Roo Hsing
The main advantage of trading using opposite YuantaP Shares and Roo Hsing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YuantaP Shares position performs unexpectedly, Roo Hsing 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 Roo Hsing will offset losses from the drop in Roo Hsing'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 |
| Roo Hsing vs. Chaintech Technology Corp | Roo Hsing vs. Avision | Roo Hsing vs. Clevo Co | Roo Hsing vs. Elitegroup Computer Systems |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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