Correlation Between YuantaP Shares and Ta Ya
Can any of the company-specific risk be diversified away by investing in both YuantaP Shares and Ta Ya 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 Ta Ya 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 Ta Ya Electric, you can compare the effects of market volatilities on YuantaP Shares and Ta Ya 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 Ta Ya. Check out your portfolio center. Please also check ongoing floating volatility patterns of YuantaP Shares and Ta Ya.
Diversification Opportunities for YuantaP Shares and Ta Ya
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between YuantaP and 1609 is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding YuantaP shares Taiwan Electron and Ta Ya Electric in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ta Ya Electric 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 Ta Ya. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ta Ya Electric has no effect on the direction of YuantaP Shares i.e., YuantaP Shares and Ta Ya go up and down completely randomly.
Pair Corralation between YuantaP Shares and Ta Ya
Assuming the 90 days trading horizon YuantaP shares Taiwan Electronics is expected to under-perform the Ta Ya. But the etf apears to be less risky and, when comparing its historical volatility, YuantaP shares Taiwan Electronics is 1.38 times less risky than Ta Ya. The etf trades about -0.17 of its potential returns per unit of risk. The Ta Ya Electric is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 4,530 in Ta Ya Electric on September 1, 2024 and sell it today you would earn a total of 55.00 from holding Ta Ya Electric or generate 1.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
YuantaP shares Taiwan Electron vs. Ta Ya Electric
Performance |
| Timeline |
| YuantaP shares Taiwan |
| Ta Ya Electric |
YuantaP Shares and Ta Ya Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YuantaP Shares and Ta Ya
The main advantage of trading using opposite YuantaP Shares and Ta Ya positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YuantaP Shares position performs unexpectedly, Ta Ya 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 Ta Ya will offset losses from the drop in Ta Ya'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 |
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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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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