Correlation Between YuantaP Shares and AOPEN
Can any of the company-specific risk be diversified away by investing in both YuantaP Shares and AOPEN 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 AOPEN 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 AOPEN Inc, you can compare the effects of market volatilities on YuantaP Shares and AOPEN 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 AOPEN. Check out your portfolio center. Please also check ongoing floating volatility patterns of YuantaP Shares and AOPEN.
Diversification Opportunities for YuantaP Shares and AOPEN
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between YuantaP and AOPEN is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding YuantaP shares Taiwan Electron and AOPEN Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AOPEN Inc 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 AOPEN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AOPEN Inc has no effect on the direction of YuantaP Shares i.e., YuantaP Shares and AOPEN go up and down completely randomly.
Pair Corralation between YuantaP Shares and AOPEN
Assuming the 90 days trading horizon YuantaP shares Taiwan Electronics is expected to under-perform the AOPEN. But the etf apears to be less risky and, when comparing its historical volatility, YuantaP shares Taiwan Electronics is 1.24 times less risky than AOPEN. The etf trades about -0.17 of its potential returns per unit of risk. The AOPEN Inc is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 5,470 in AOPEN Inc on August 30, 2024 and sell it today you would earn a total of 20.00 from holding AOPEN Inc or generate 0.37% 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. AOPEN Inc
Performance |
| Timeline |
| YuantaP shares Taiwan |
| AOPEN Inc |
YuantaP Shares and AOPEN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YuantaP Shares and AOPEN
The main advantage of trading using opposite YuantaP Shares and AOPEN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YuantaP Shares position performs unexpectedly, AOPEN 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 AOPEN will offset losses from the drop in AOPEN'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 |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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