Correlation Between YuantaP Shares and Acbel Polytech
Can any of the company-specific risk be diversified away by investing in both YuantaP Shares and Acbel Polytech 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 Acbel Polytech 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 Acbel Polytech, you can compare the effects of market volatilities on YuantaP Shares and Acbel Polytech 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 Acbel Polytech. Check out your portfolio center. Please also check ongoing floating volatility patterns of YuantaP Shares and Acbel Polytech.
Diversification Opportunities for YuantaP Shares and Acbel Polytech
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between YuantaP and Acbel is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding YuantaP shares Taiwan Top and Acbel Polytech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acbel Polytech 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 Acbel Polytech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acbel Polytech has no effect on the direction of YuantaP Shares i.e., YuantaP Shares and Acbel Polytech go up and down completely randomly.
Pair Corralation between YuantaP Shares and Acbel Polytech
Assuming the 90 days trading horizon YuantaP shares Taiwan Top is expected to generate 0.5 times more return on investment than Acbel Polytech. However, YuantaP shares Taiwan Top is 2.0 times less risky than Acbel Polytech. It trades about 0.06 of its potential returns per unit of risk. Acbel Polytech is currently generating about -0.05 per unit of risk. If you would invest 19,338 in YuantaP shares Taiwan Top on October 26, 2024 and sell it today you would earn a total of 792.00 from holding YuantaP shares Taiwan Top or generate 4.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.41% |
| Values | Daily Returns |
YuantaP shares Taiwan Top vs. Acbel Polytech
Performance |
| Timeline |
| YuantaP shares Taiwan |
| Acbel Polytech |
YuantaP Shares and Acbel Polytech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YuantaP Shares and Acbel Polytech
The main advantage of trading using opposite YuantaP Shares and Acbel Polytech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YuantaP Shares position performs unexpectedly, Acbel Polytech 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 Acbel Polytech will offset losses from the drop in Acbel Polytech'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 |
| Acbel Polytech vs. Cheng Uei Precision | Acbel Polytech vs. Gemtek Technology Co | Acbel Polytech vs. Kinpo Electronics | Acbel Polytech vs. Darfon Electronics Corp |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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