Correlation Between YuantaP Shares and San Neng
Can any of the company-specific risk be diversified away by investing in both YuantaP Shares and San Neng 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 San Neng 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 San Neng Group, you can compare the effects of market volatilities on YuantaP Shares and San Neng 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 San Neng. Check out your portfolio center. Please also check ongoing floating volatility patterns of YuantaP Shares and San Neng.
Diversification Opportunities for YuantaP Shares and San Neng
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between YuantaP and San is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding YuantaP shares Taiwan Mid Cap and San Neng Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on San Neng Group 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 San Neng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of San Neng Group has no effect on the direction of YuantaP Shares i.e., YuantaP Shares and San Neng go up and down completely randomly.
Pair Corralation between YuantaP Shares and San Neng
Assuming the 90 days trading horizon YuantaP shares Taiwan Mid Cap is expected to under-perform the San Neng. In addition to that, YuantaP Shares is 1.6 times more volatile than San Neng Group. It trades about -0.04 of its total potential returns per unit of risk. San Neng Group is currently generating about 0.02 per unit of volatility. If you would invest 4,160 in San Neng Group on October 23, 2024 and sell it today you would earn a total of 10.00 from holding San Neng Group or generate 0.24% 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. San Neng Group
Performance |
| Timeline |
| YuantaP shares Taiwan |
| San Neng Group |
YuantaP Shares and San Neng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YuantaP Shares and San Neng
The main advantage of trading using opposite YuantaP Shares and San Neng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YuantaP Shares position performs unexpectedly, San Neng 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 San Neng will offset losses from the drop in San Neng'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 |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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