Correlation Between YuantaP Shares and AGV Products
Can any of the company-specific risk be diversified away by investing in both YuantaP Shares and AGV Products 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 AGV Products 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 AGV Products Corp, you can compare the effects of market volatilities on YuantaP Shares and AGV Products 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 AGV Products. Check out your portfolio center. Please also check ongoing floating volatility patterns of YuantaP Shares and AGV Products.
Diversification Opportunities for YuantaP Shares and AGV Products
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between YuantaP and AGV is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding YuantaP shares Taiwan Electron and AGV Products Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AGV Products Corp 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 AGV Products. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AGV Products Corp has no effect on the direction of YuantaP Shares i.e., YuantaP Shares and AGV Products go up and down completely randomly.
Pair Corralation between YuantaP Shares and AGV Products
Assuming the 90 days trading horizon YuantaP shares Taiwan Electronics is expected to under-perform the AGV Products. In addition to that, YuantaP Shares is 2.14 times more volatile than AGV Products Corp. It trades about -0.11 of its total potential returns per unit of risk. AGV Products Corp is currently generating about 0.27 per unit of volatility. If you would invest 1,155 in AGV Products Corp on December 11, 2024 and sell it today you would earn a total of 75.00 from holding AGV Products Corp or generate 6.49% 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 Electron vs. AGV Products Corp
Performance |
| Timeline |
| YuantaP shares Taiwan |
| AGV Products Corp |
YuantaP Shares and AGV Products Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YuantaP Shares and AGV Products
The main advantage of trading using opposite YuantaP Shares and AGV Products positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YuantaP Shares position performs unexpectedly, AGV Products 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 AGV Products will offset losses from the drop in AGV Products' 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 |
| AGV Products vs. Taisun Enterprise Co | AGV Products vs. Wei Chuan Foods | AGV Products vs. Hunya Foods Co | AGV Products vs. Chia Hsin Cement |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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