Correlation Between YuantaP Shares and Fuh Hwa
Can any of the company-specific risk be diversified away by investing in both YuantaP Shares and Fuh Hwa 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 Fuh Hwa into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between YuantaP shares Taiwan Electronics and Fuh Hwa Daily, you can compare the effects of market volatilities on YuantaP Shares and Fuh Hwa 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 Fuh Hwa. Check out your portfolio center. Please also check ongoing floating volatility patterns of YuantaP Shares and Fuh Hwa.
Diversification Opportunities for YuantaP Shares and Fuh Hwa
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between YuantaP and Fuh is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding YuantaP shares Taiwan Electron and Fuh Hwa Daily in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fuh Hwa Daily 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 Electronics are associated (or correlated) with Fuh Hwa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fuh Hwa Daily has no effect on the direction of YuantaP Shares i.e., YuantaP Shares and Fuh Hwa go up and down completely randomly.
Pair Corralation between YuantaP Shares and Fuh Hwa
Assuming the 90 days trading horizon YuantaP shares Taiwan Electronics is expected to under-perform the Fuh Hwa. But the etf apears to be less risky and, when comparing its historical volatility, YuantaP shares Taiwan Electronics is 1.17 times less risky than Fuh Hwa. The etf trades about -0.25 of its potential returns per unit of risk. The Fuh Hwa Daily is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 718.00 in Fuh Hwa Daily on August 24, 2024 and sell it today you would earn a total of 45.00 from holding Fuh Hwa Daily or generate 6.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
YuantaP shares Taiwan Electron vs. Fuh Hwa Daily
Performance |
| Timeline |
| YuantaP shares Taiwan |
| Fuh Hwa Daily |
YuantaP Shares and Fuh Hwa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YuantaP Shares and Fuh Hwa
The main advantage of trading using opposite YuantaP Shares and Fuh Hwa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YuantaP Shares position performs unexpectedly, Fuh Hwa 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 Fuh Hwa will offset losses from the drop in Fuh Hwa'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 |
| Fuh Hwa vs. YuantaP shares Taiwan Top | Fuh Hwa vs. Yuanta Daily Taiwan | Fuh Hwa vs. Cathay Taiwan 5G | Fuh Hwa vs. Yuanta Daily CSI |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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