Correlation Between YuantaP Shares and United Integrated
Can any of the company-specific risk be diversified away by investing in both YuantaP Shares and United Integrated 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 United Integrated 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 United Integrated Services, you can compare the effects of market volatilities on YuantaP Shares and United Integrated 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 United Integrated. Check out your portfolio center. Please also check ongoing floating volatility patterns of YuantaP Shares and United Integrated.
Diversification Opportunities for YuantaP Shares and United Integrated
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between YuantaP and United is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding YuantaP shares Taiwan Mid Cap and United Integrated Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on United Integrated 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 United Integrated. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of United Integrated has no effect on the direction of YuantaP Shares i.e., YuantaP Shares and United Integrated go up and down completely randomly.
Pair Corralation between YuantaP Shares and United Integrated
Assuming the 90 days trading horizon YuantaP shares Taiwan Mid Cap is expected to under-perform the United Integrated. But the etf apears to be less risky and, when comparing its historical volatility, YuantaP shares Taiwan Mid Cap is 2.17 times less risky than United Integrated. The etf trades about -0.16 of its potential returns per unit of risk. The United Integrated Services is currently generating about 0.33 of returns per unit of risk over similar time horizon. If you would invest 34,350 in United Integrated Services on August 29, 2024 and sell it today you would earn a total of 6,150 from holding United Integrated Services or generate 17.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
YuantaP shares Taiwan Mid Cap vs. United Integrated Services
Performance |
| Timeline |
| YuantaP shares Taiwan |
| United Integrated |
YuantaP Shares and United Integrated Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YuantaP Shares and United Integrated
The main advantage of trading using opposite YuantaP Shares and United Integrated positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YuantaP Shares position performs unexpectedly, United Integrated 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 United Integrated will offset losses from the drop in United Integrated's long position.The idea behind YuantaP shares Taiwan Mid Cap and United Integrated Services pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| United Integrated vs. Sunny Friend Environmental | United Integrated vs. TTET Union Corp | United Integrated vs. ECOVE Environment Corp | United Integrated vs. Yulon Finance 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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