Correlation Between YuantaP Shares and Avalue Technology
Can any of the company-specific risk be diversified away by investing in both YuantaP Shares and Avalue Technology 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 Avalue Technology 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 Avalue Technology, you can compare the effects of market volatilities on YuantaP Shares and Avalue Technology 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 Avalue Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of YuantaP Shares and Avalue Technology.
Diversification Opportunities for YuantaP Shares and Avalue Technology
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between YuantaP and Avalue is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding YuantaP shares Taiwan Electron and Avalue Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Avalue Technology 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 Avalue Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Avalue Technology has no effect on the direction of YuantaP Shares i.e., YuantaP Shares and Avalue Technology go up and down completely randomly.
Pair Corralation between YuantaP Shares and Avalue Technology
Assuming the 90 days trading horizon YuantaP shares Taiwan Electronics is expected to generate 0.79 times more return on investment than Avalue Technology. However, YuantaP shares Taiwan Electronics is 1.27 times less risky than Avalue Technology. It trades about -0.2 of its potential returns per unit of risk. Avalue Technology is currently generating about -0.29 per unit of risk. If you would invest 9,750 in YuantaP shares Taiwan Electronics on January 23, 2025 and sell it today you would lose (1,555) from holding YuantaP shares Taiwan Electronics or give up 15.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
YuantaP shares Taiwan Electron vs. Avalue Technology
Performance |
| Timeline |
| YuantaP shares Taiwan |
| Avalue Technology |
YuantaP Shares and Avalue Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YuantaP Shares and Avalue Technology
The main advantage of trading using opposite YuantaP Shares and Avalue Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YuantaP Shares position performs unexpectedly, Avalue Technology 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 Avalue Technology will offset losses from the drop in Avalue Technology'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 |
| Avalue Technology vs. Youngtek Electronics | Avalue Technology vs. Para Light Electronics | Avalue Technology vs. U Media Communications | Avalue Technology vs. Jetwell Computer 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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