Correlation Between YuantaP Shares and FSP Technology
Can any of the company-specific risk be diversified away by investing in both YuantaP Shares and FSP Technology 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 FSP Technology 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 FSP Technology, you can compare the effects of market volatilities on YuantaP Shares and FSP Technology 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 FSP Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of YuantaP Shares and FSP Technology.
Diversification Opportunities for YuantaP Shares and FSP Technology
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between YuantaP and FSP is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding YuantaP shares Taiwan Mid Cap and FSP Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FSP Technology 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 FSP Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FSP Technology has no effect on the direction of YuantaP Shares i.e., YuantaP Shares and FSP Technology go up and down completely randomly.
Pair Corralation between YuantaP Shares and FSP Technology
Assuming the 90 days trading horizon YuantaP shares Taiwan Mid Cap is expected to under-perform the FSP Technology. But the etf apears to be less risky and, when comparing its historical volatility, YuantaP shares Taiwan Mid Cap is 2.46 times less risky than FSP Technology. The etf trades about -0.02 of its potential returns per unit of risk. The FSP Technology is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 6,060 in FSP Technology on October 26, 2024 and sell it today you would earn a total of 440.00 from holding FSP Technology or generate 7.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
YuantaP shares Taiwan Mid Cap vs. FSP Technology
Performance |
| Timeline |
| YuantaP shares Taiwan |
| FSP Technology |
YuantaP Shares and FSP Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YuantaP Shares and FSP Technology
The main advantage of trading using opposite YuantaP Shares and FSP Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YuantaP Shares position performs unexpectedly, FSP Technology 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 FSP Technology will offset losses from the drop in FSP Technology'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 |
| FSP Technology vs. Wah Lee Industrial | FSP Technology vs. Sinbon Electronics Co | FSP Technology vs. Acbel Polytech | FSP Technology vs. TXC 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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