Correlation Between YuantaP Shares and Eastern Media
Can any of the company-specific risk be diversified away by investing in both YuantaP Shares and Eastern Media 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 Eastern Media 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 Eastern Media International, you can compare the effects of market volatilities on YuantaP Shares and Eastern Media 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 Eastern Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of YuantaP Shares and Eastern Media.
Diversification Opportunities for YuantaP Shares and Eastern Media
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between YuantaP and Eastern is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding YuantaP shares Taiwan Electron and Eastern Media International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eastern Media Intern 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 Eastern Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eastern Media Intern has no effect on the direction of YuantaP Shares i.e., YuantaP Shares and Eastern Media go up and down completely randomly.
Pair Corralation between YuantaP Shares and Eastern Media
Assuming the 90 days trading horizon YuantaP shares Taiwan Electronics is expected to under-perform the Eastern Media. But the etf apears to be less risky and, when comparing its historical volatility, YuantaP shares Taiwan Electronics is 1.28 times less risky than Eastern Media. The etf trades about -0.26 of its potential returns per unit of risk. The Eastern Media International is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 1,825 in Eastern Media International on August 23, 2024 and sell it today you would lose (5.00) from holding Eastern Media International or give up 0.27% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
YuantaP shares Taiwan Electron vs. Eastern Media International
Performance |
| Timeline |
| YuantaP shares Taiwan |
| Eastern Media Intern |
YuantaP Shares and Eastern Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YuantaP Shares and Eastern Media
The main advantage of trading using opposite YuantaP Shares and Eastern Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YuantaP Shares position performs unexpectedly, Eastern Media 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 Eastern Media will offset losses from the drop in Eastern Media's long position.| YuantaP Shares vs. YuantaP shares Taiwan Top | YuantaP Shares vs. Yuanta Daily Taiwan | YuantaP Shares vs. Cathay Taiwan 5G | YuantaP Shares vs. Yuanta Daily CSI |
| Eastern Media vs. Ichia Technologies | Eastern Media vs. Elan Microelectronics Corp | Eastern Media vs. Amtran Technology Co | Eastern Media vs. Sunplus Technology 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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