Correlation Between YuantaP Shares and Ji Haw
Can any of the company-specific risk be diversified away by investing in both YuantaP Shares and Ji Haw 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 Ji Haw 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 Ji Haw Industrial Co, you can compare the effects of market volatilities on YuantaP Shares and Ji Haw 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 Ji Haw. Check out your portfolio center. Please also check ongoing floating volatility patterns of YuantaP Shares and Ji Haw.
Diversification Opportunities for YuantaP Shares and Ji Haw
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between YuantaP and 3011 is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding YuantaP shares Taiwan Mid Cap and Ji Haw Industrial Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ji Haw Industrial 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 Ji Haw. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ji Haw Industrial has no effect on the direction of YuantaP Shares i.e., YuantaP Shares and Ji Haw go up and down completely randomly.
Pair Corralation between YuantaP Shares and Ji Haw
Assuming the 90 days trading horizon YuantaP shares Taiwan Mid Cap is expected to generate 0.4 times more return on investment than Ji Haw. However, YuantaP shares Taiwan Mid Cap is 2.52 times less risky than Ji Haw. It trades about 0.08 of its potential returns per unit of risk. Ji Haw Industrial Co is currently generating about 0.01 per unit of risk. If you would invest 5,370 in YuantaP shares Taiwan Mid Cap on October 22, 2024 and sell it today you would earn a total of 2,275 from holding YuantaP shares Taiwan Mid Cap or generate 42.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
YuantaP shares Taiwan Mid Cap vs. Ji Haw Industrial Co
Performance |
| Timeline |
| YuantaP shares Taiwan |
| Ji Haw Industrial |
YuantaP Shares and Ji Haw Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YuantaP Shares and Ji Haw
The main advantage of trading using opposite YuantaP Shares and Ji Haw positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YuantaP Shares position performs unexpectedly, Ji Haw 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 Ji Haw will offset losses from the drop in Ji Haw'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 |
| Ji Haw vs. Clevo Co | Ji Haw vs. Gigastorage Corp | Ji Haw vs. KYE Systems Corp | Ji Haw vs. AVerMedia Technologies |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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