Correlation Between YuantaP Shares and Excelsior Medical
Can any of the company-specific risk be diversified away by investing in both YuantaP Shares and Excelsior Medical 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 Excelsior Medical 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 Excelsior Medical Co, you can compare the effects of market volatilities on YuantaP Shares and Excelsior Medical 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 Excelsior Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of YuantaP Shares and Excelsior Medical.
Diversification Opportunities for YuantaP Shares and Excelsior Medical
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between YuantaP and Excelsior is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding YuantaP shares Taiwan Mid Cap and Excelsior Medical Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Excelsior Medical 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 Excelsior Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Excelsior Medical has no effect on the direction of YuantaP Shares i.e., YuantaP Shares and Excelsior Medical go up and down completely randomly.
Pair Corralation between YuantaP Shares and Excelsior Medical
Assuming the 90 days trading horizon YuantaP shares Taiwan Mid Cap is expected to generate 0.86 times more return on investment than Excelsior Medical. However, YuantaP shares Taiwan Mid Cap is 1.16 times less risky than Excelsior Medical. It trades about 0.08 of its potential returns per unit of risk. Excelsior Medical Co is currently generating about 0.06 per unit of risk. If you would invest 5,360 in YuantaP shares Taiwan Mid Cap on August 25, 2024 and sell it today you would earn a total of 2,480 from holding YuantaP shares Taiwan Mid Cap or generate 46.27% 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. Excelsior Medical Co
Performance |
| Timeline |
| YuantaP shares Taiwan |
| Excelsior Medical |
YuantaP Shares and Excelsior Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YuantaP Shares and Excelsior Medical
The main advantage of trading using opposite YuantaP Shares and Excelsior Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YuantaP Shares position performs unexpectedly, Excelsior Medical 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 Excelsior Medical will offset losses from the drop in Excelsior Medical'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 |
| Excelsior Medical vs. Wellell | Excelsior Medical vs. YungShin Global Holding | Excelsior Medical vs. Abnova Taiwan Corp | Excelsior Medical vs. Phytohealth 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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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