Correlation Between YuantaP Shares and Aces Electronics
Can any of the company-specific risk be diversified away by investing in both YuantaP Shares and Aces Electronics 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 Aces Electronics 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 Aces Electronics Co, you can compare the effects of market volatilities on YuantaP Shares and Aces Electronics 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 Aces Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of YuantaP Shares and Aces Electronics.
Diversification Opportunities for YuantaP Shares and Aces Electronics
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between YuantaP and Aces is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding YuantaP shares Taiwan Mid Cap and Aces Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aces Electronics 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 Aces Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aces Electronics has no effect on the direction of YuantaP Shares i.e., YuantaP Shares and Aces Electronics go up and down completely randomly.
Pair Corralation between YuantaP Shares and Aces Electronics
Assuming the 90 days trading horizon YuantaP shares Taiwan Mid Cap is expected to under-perform the Aces Electronics. But the etf apears to be less risky and, when comparing its historical volatility, YuantaP shares Taiwan Mid Cap is 2.97 times less risky than Aces Electronics. The etf trades about -0.01 of its potential returns per unit of risk. The Aces Electronics Co is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 3,690 in Aces Electronics Co on October 12, 2024 and sell it today you would earn a total of 1,120 from holding Aces Electronics Co or generate 30.35% 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. Aces Electronics Co
Performance |
| Timeline |
| YuantaP shares Taiwan |
| Aces Electronics |
YuantaP Shares and Aces Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YuantaP Shares and Aces Electronics
The main advantage of trading using opposite YuantaP Shares and Aces Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YuantaP Shares position performs unexpectedly, Aces Electronics 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 Aces Electronics will offset losses from the drop in Aces Electronics' 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 |
| Aces Electronics vs. Chant Sincere Co | Aces Electronics vs. Altek Corp | Aces Electronics vs. Jentech Precision Industrial | Aces Electronics vs. Lotes Co |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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