Correlation Between YuantaP Shares and Advantech
Can any of the company-specific risk be diversified away by investing in both YuantaP Shares and Advantech 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 Advantech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between YuantaP shares Taiwan Mid Cap and Advantech Co, you can compare the effects of market volatilities on YuantaP Shares and Advantech 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 Advantech. Check out your portfolio center. Please also check ongoing floating volatility patterns of YuantaP Shares and Advantech.
Diversification Opportunities for YuantaP Shares and Advantech
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between YuantaP and Advantech is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding YuantaP shares Taiwan Mid Cap and Advantech Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Advantech 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 Mid Cap are associated (or correlated) with Advantech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Advantech has no effect on the direction of YuantaP Shares i.e., YuantaP Shares and Advantech go up and down completely randomly.
Pair Corralation between YuantaP Shares and Advantech
Assuming the 90 days trading horizon YuantaP shares Taiwan Mid Cap is expected to generate 0.63 times more return on investment than Advantech. However, YuantaP shares Taiwan Mid Cap is 1.59 times less risky than Advantech. It trades about 0.07 of its potential returns per unit of risk. Advantech Co is currently generating about 0.02 per unit of risk. If you would invest 5,495 in YuantaP shares Taiwan Mid Cap on October 25, 2024 and sell it today you would earn a total of 2,235 from holding YuantaP shares Taiwan Mid Cap or generate 40.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
YuantaP shares Taiwan Mid Cap vs. Advantech Co
Performance |
| Timeline |
| YuantaP shares Taiwan |
| Advantech |
YuantaP Shares and Advantech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YuantaP Shares and Advantech
The main advantage of trading using opposite YuantaP Shares and Advantech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YuantaP Shares position performs unexpectedly, Advantech 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 Advantech will offset losses from the drop in Advantech's long position.| YuantaP Shares vs. YuantaP shares Taiwan Top | YuantaP Shares vs. YuantaP shares MSCI Taiwan | YuantaP Shares vs. YuantaP shares Taiwan GreTai | YuantaP Shares vs. YuantaP shares SSE50 |
| Advantech vs. Delta Electronics | Advantech vs. Quanta Computer | Advantech vs. Realtek Semiconductor Corp | Advantech vs. President Chain Store |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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