Correlation Between YuantaP Shares and Kinpo Electronics
Can any of the company-specific risk be diversified away by investing in both YuantaP Shares and Kinpo Electronics 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 Kinpo Electronics 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 Kinpo Electronics, you can compare the effects of market volatilities on YuantaP Shares and Kinpo Electronics 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 Kinpo Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of YuantaP Shares and Kinpo Electronics.
Diversification Opportunities for YuantaP Shares and Kinpo Electronics
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between YuantaP and Kinpo is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding YuantaP shares Taiwan Electron and Kinpo Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kinpo Electronics 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 Kinpo Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kinpo Electronics has no effect on the direction of YuantaP Shares i.e., YuantaP Shares and Kinpo Electronics go up and down completely randomly.
Pair Corralation between YuantaP Shares and Kinpo Electronics
Assuming the 90 days trading horizon YuantaP shares Taiwan Electronics is expected to generate 0.94 times more return on investment than Kinpo Electronics. However, YuantaP shares Taiwan Electronics is 1.06 times less risky than Kinpo Electronics. It trades about 0.1 of its potential returns per unit of risk. Kinpo Electronics is currently generating about -0.23 per unit of risk. If you would invest 10,435 in YuantaP shares Taiwan Electronics on October 26, 2024 and sell it today you would earn a total of 295.00 from holding YuantaP shares Taiwan Electronics or generate 2.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
YuantaP shares Taiwan Electron vs. Kinpo Electronics
Performance |
| Timeline |
| YuantaP shares Taiwan |
| Kinpo Electronics |
YuantaP Shares and Kinpo Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YuantaP Shares and Kinpo Electronics
The main advantage of trading using opposite YuantaP Shares and Kinpo Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YuantaP Shares position performs unexpectedly, Kinpo Electronics 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 Kinpo Electronics will offset losses from the drop in Kinpo Electronics' 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 |
| Kinpo Electronics vs. Compal Electronics | Kinpo Electronics vs. Inventec Corp | Kinpo Electronics vs. D Link Corp | Kinpo Electronics vs. Silicon Integrated Systems |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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