Correlation Between YuantaP Shares and Merida Industry
Can any of the company-specific risk be diversified away by investing in both YuantaP Shares and Merida Industry 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 Merida Industry 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 Merida Industry Co, you can compare the effects of market volatilities on YuantaP Shares and Merida Industry 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 Merida Industry. Check out your portfolio center. Please also check ongoing floating volatility patterns of YuantaP Shares and Merida Industry.
Diversification Opportunities for YuantaP Shares and Merida Industry
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between YuantaP and Merida is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding YuantaP shares Taiwan Top and Merida Industry Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Merida Industry 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 Merida Industry. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Merida Industry has no effect on the direction of YuantaP Shares i.e., YuantaP Shares and Merida Industry go up and down completely randomly.
Pair Corralation between YuantaP Shares and Merida Industry
Assuming the 90 days trading horizon YuantaP shares Taiwan Top is expected to generate 0.66 times more return on investment than Merida Industry. However, YuantaP shares Taiwan Top is 1.51 times less risky than Merida Industry. It trades about 0.09 of its potential returns per unit of risk. Merida Industry Co is currently generating about -0.54 per unit of risk. If you would invest 18,500 in YuantaP shares Taiwan Top on August 25, 2024 and sell it today you would earn a total of 805.00 from holding YuantaP shares Taiwan Top or generate 4.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 93.18% |
| Values | Daily Returns |
YuantaP shares Taiwan Top vs. Merida Industry Co
Performance |
| Timeline |
| YuantaP shares Taiwan |
| Merida Industry |
YuantaP Shares and Merida Industry Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YuantaP Shares and Merida Industry
The main advantage of trading using opposite YuantaP Shares and Merida Industry positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YuantaP Shares position performs unexpectedly, Merida Industry 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 Merida Industry will offset losses from the drop in Merida Industry's long position.| YuantaP Shares vs. Cathay Taiwan 5G | YuantaP Shares vs. Yuanta Daily CSI | YuantaP Shares vs. Fuh Hwa Emerging | YuantaP Shares vs. Paradigm SP GSCI |
| Merida Industry vs. Taiwan Semiconductor Manufacturing | Merida Industry vs. Hon Hai Precision | Merida Industry vs. MediaTek | Merida Industry vs. Chunghwa Telecom 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Stocks Directory Find actively traded stocks across global markets |