Correlation Between YuantaP Shares and Pontex Polyblend
Can any of the company-specific risk be diversified away by investing in both YuantaP Shares and Pontex Polyblend 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 Pontex Polyblend 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 Pontex Polyblend CoLtd, you can compare the effects of market volatilities on YuantaP Shares and Pontex Polyblend 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 Pontex Polyblend. Check out your portfolio center. Please also check ongoing floating volatility patterns of YuantaP Shares and Pontex Polyblend.
Diversification Opportunities for YuantaP Shares and Pontex Polyblend
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between YuantaP and Pontex is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding YuantaP shares Taiwan Mid Cap and Pontex Polyblend CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pontex Polyblend CoLtd 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 Pontex Polyblend. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pontex Polyblend CoLtd has no effect on the direction of YuantaP Shares i.e., YuantaP Shares and Pontex Polyblend go up and down completely randomly.
Pair Corralation between YuantaP Shares and Pontex Polyblend
Assuming the 90 days trading horizon YuantaP shares Taiwan Mid Cap is expected to under-perform the Pontex Polyblend. But the etf apears to be less risky and, when comparing its historical volatility, YuantaP shares Taiwan Mid Cap is 2.9 times less risky than Pontex Polyblend. The etf trades about -0.08 of its potential returns per unit of risk. The Pontex Polyblend CoLtd is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 2,030 in Pontex Polyblend CoLtd on October 26, 2024 and sell it today you would earn a total of 260.00 from holding Pontex Polyblend CoLtd or generate 12.81% 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. Pontex Polyblend CoLtd
Performance |
| Timeline |
| YuantaP shares Taiwan |
| Pontex Polyblend CoLtd |
YuantaP Shares and Pontex Polyblend Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YuantaP Shares and Pontex Polyblend
The main advantage of trading using opposite YuantaP Shares and Pontex Polyblend positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YuantaP Shares position performs unexpectedly, Pontex Polyblend 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 Pontex Polyblend will offset losses from the drop in Pontex Polyblend'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 |
| Pontex Polyblend vs. FarGlory Hotel Co | Pontex Polyblend vs. Thye Ming Industrial | Pontex Polyblend vs. First Hotel Co | Pontex Polyblend vs. Camellia Metal 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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