Correlation Between YuantaP Shares and Ampoc Far
Can any of the company-specific risk be diversified away by investing in both YuantaP Shares and Ampoc Far 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 Ampoc Far 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 Ampoc Far East Co, you can compare the effects of market volatilities on YuantaP Shares and Ampoc Far 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 Ampoc Far. Check out your portfolio center. Please also check ongoing floating volatility patterns of YuantaP Shares and Ampoc Far.
Diversification Opportunities for YuantaP Shares and Ampoc Far
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between YuantaP and Ampoc is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding YuantaP shares Taiwan Mid Cap and Ampoc Far East Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ampoc Far East 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 Ampoc Far. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ampoc Far East has no effect on the direction of YuantaP Shares i.e., YuantaP Shares and Ampoc Far go up and down completely randomly.
Pair Corralation between YuantaP Shares and Ampoc Far
Assuming the 90 days trading horizon YuantaP Shares is expected to generate 4.34 times less return on investment than Ampoc Far. But when comparing it to its historical volatility, YuantaP shares Taiwan Mid Cap is 2.15 times less risky than Ampoc Far. It trades about 0.02 of its potential returns per unit of risk. Ampoc Far East Co is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 8,570 in Ampoc Far East Co on November 5, 2024 and sell it today you would earn a total of 1,200 from holding Ampoc Far East Co or generate 14.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
YuantaP shares Taiwan Mid Cap vs. Ampoc Far East Co
Performance |
| Timeline |
| YuantaP shares Taiwan |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Ampoc Far East |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
YuantaP Shares and Ampoc Far Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YuantaP Shares and Ampoc Far
The main advantage of trading using opposite YuantaP Shares and Ampoc Far positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YuantaP Shares position performs unexpectedly, Ampoc Far 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 Ampoc Far will offset losses from the drop in Ampoc Far's long position.The idea behind YuantaP shares Taiwan Mid Cap and Ampoc Far East Co 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.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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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