Correlation Between YuantaP Shares and Fulgent Sun
Can any of the company-specific risk be diversified away by investing in both YuantaP Shares and Fulgent Sun 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 Fulgent Sun 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 Fulgent Sun International, you can compare the effects of market volatilities on YuantaP Shares and Fulgent Sun 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 Fulgent Sun. Check out your portfolio center. Please also check ongoing floating volatility patterns of YuantaP Shares and Fulgent Sun.
Diversification Opportunities for YuantaP Shares and Fulgent Sun
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between YuantaP and Fulgent is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding YuantaP shares Taiwan Top and Fulgent Sun International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fulgent Sun International 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 Fulgent Sun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fulgent Sun International has no effect on the direction of YuantaP Shares i.e., YuantaP Shares and Fulgent Sun go up and down completely randomly.
Pair Corralation between YuantaP Shares and Fulgent Sun
Assuming the 90 days trading horizon YuantaP shares Taiwan Top is expected to under-perform the Fulgent Sun. But the etf apears to be less risky and, when comparing its historical volatility, YuantaP shares Taiwan Top is 1.67 times less risky than Fulgent Sun. The etf trades about -0.09 of its potential returns per unit of risk. The Fulgent Sun International is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 10,750 in Fulgent Sun International on August 30, 2024 and sell it today you would earn a total of 450.00 from holding Fulgent Sun International or generate 4.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
YuantaP shares Taiwan Top vs. Fulgent Sun International
Performance |
| Timeline |
| YuantaP shares Taiwan |
| Fulgent Sun International |
YuantaP Shares and Fulgent Sun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YuantaP Shares and Fulgent Sun
The main advantage of trading using opposite YuantaP Shares and Fulgent Sun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YuantaP Shares position performs unexpectedly, Fulgent Sun 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 Fulgent Sun will offset losses from the drop in Fulgent Sun'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 |
| Fulgent Sun vs. Feng Tay Enterprises | Fulgent Sun vs. Pou Chen Corp | Fulgent Sun vs. Taiwan Paiho | Fulgent Sun vs. Merida Industry 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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