Correlation Between YuantaP Shares and Alexander Marine
Can any of the company-specific risk be diversified away by investing in both YuantaP Shares and Alexander Marine 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 Alexander Marine 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 Alexander Marine Co, you can compare the effects of market volatilities on YuantaP Shares and Alexander Marine 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 Alexander Marine. Check out your portfolio center. Please also check ongoing floating volatility patterns of YuantaP Shares and Alexander Marine.
Diversification Opportunities for YuantaP Shares and Alexander Marine
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between YuantaP and Alexander is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding YuantaP shares Taiwan Top and Alexander Marine Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alexander Marine 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 Alexander Marine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alexander Marine has no effect on the direction of YuantaP Shares i.e., YuantaP Shares and Alexander Marine go up and down completely randomly.
Pair Corralation between YuantaP Shares and Alexander Marine
Assuming the 90 days trading horizon YuantaP shares Taiwan Top is expected to generate 0.66 times more return on investment than Alexander Marine. However, YuantaP shares Taiwan Top is 1.51 times less risky than Alexander Marine. It trades about -0.12 of its potential returns per unit of risk. Alexander Marine Co is currently generating about -0.33 per unit of risk. If you would invest 19,605 in YuantaP shares Taiwan Top on August 29, 2024 and sell it today you would lose (620.00) from holding YuantaP shares Taiwan Top or give up 3.16% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
YuantaP shares Taiwan Top vs. Alexander Marine Co
Performance |
| Timeline |
| YuantaP shares Taiwan |
| Alexander Marine |
YuantaP Shares and Alexander Marine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YuantaP Shares and Alexander Marine
The main advantage of trading using opposite YuantaP Shares and Alexander Marine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YuantaP Shares position performs unexpectedly, Alexander Marine 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 Alexander Marine will offset losses from the drop in Alexander Marine'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 |
| Alexander Marine vs. Chung Hsin Electric Machinery | Alexander Marine vs. Andes Technology Corp | Alexander Marine vs. Asia Vital Components | Alexander Marine vs. Fulgent Sun International |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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