Correlation Between YuantaP Shares and Asia Vital
Can any of the company-specific risk be diversified away by investing in both YuantaP Shares and Asia Vital 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 Asia Vital 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 Asia Vital Components, you can compare the effects of market volatilities on YuantaP Shares and Asia Vital 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 Asia Vital. Check out your portfolio center. Please also check ongoing floating volatility patterns of YuantaP Shares and Asia Vital.
Diversification Opportunities for YuantaP Shares and Asia Vital
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between YuantaP and Asia is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding YuantaP shares Taiwan Electron and Asia Vital Components in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asia Vital Components 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 Asia Vital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asia Vital Components has no effect on the direction of YuantaP Shares i.e., YuantaP Shares and Asia Vital go up and down completely randomly.
Pair Corralation between YuantaP Shares and Asia Vital
Assuming the 90 days trading horizon YuantaP shares Taiwan Electronics is expected to under-perform the Asia Vital. But the etf apears to be less risky and, when comparing its historical volatility, YuantaP shares Taiwan Electronics is 2.16 times less risky than Asia Vital. The etf trades about -0.17 of its potential returns per unit of risk. The Asia Vital Components is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 62,600 in Asia Vital Components on August 30, 2024 and sell it today you would earn a total of 400.00 from holding Asia Vital Components or generate 0.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
YuantaP shares Taiwan Electron vs. Asia Vital Components
Performance |
| Timeline |
| YuantaP shares Taiwan |
| Asia Vital Components |
YuantaP Shares and Asia Vital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YuantaP Shares and Asia Vital
The main advantage of trading using opposite YuantaP Shares and Asia Vital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YuantaP Shares position performs unexpectedly, Asia Vital 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 Asia Vital will offset losses from the drop in Asia Vital's long position.| YuantaP Shares vs. Yuanta Daily Taiwan | YuantaP Shares vs. Symtek Automation Asia | YuantaP Shares vs. CTCI Corp | YuantaP Shares vs. Information Technology Total |
| Asia Vital vs. Unimicron Technology Corp | Asia Vital vs. Asia Optical Co | Asia Vital vs. Kinsus Interconnect Technology | Asia Vital vs. Novatek Microelectronics Corp |
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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