Correlation Between YuantaP Shares and Xander International
Can any of the company-specific risk be diversified away by investing in both YuantaP Shares and Xander International 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 Xander International 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 Xander International, you can compare the effects of market volatilities on YuantaP Shares and Xander International 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 Xander International. Check out your portfolio center. Please also check ongoing floating volatility patterns of YuantaP Shares and Xander International.
Diversification Opportunities for YuantaP Shares and Xander International
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between YuantaP and Xander is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding YuantaP shares Taiwan Electron and Xander International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xander International 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 Xander International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xander International has no effect on the direction of YuantaP Shares i.e., YuantaP Shares and Xander International go up and down completely randomly.
Pair Corralation between YuantaP Shares and Xander International
Assuming the 90 days trading horizon YuantaP shares Taiwan Electronics is expected to generate 0.65 times more return on investment than Xander International. However, YuantaP shares Taiwan Electronics is 1.53 times less risky than Xander International. It trades about 0.03 of its potential returns per unit of risk. Xander International is currently generating about 0.0 per unit of risk. If you would invest 9,220 in YuantaP shares Taiwan Electronics on August 30, 2024 and sell it today you would earn a total of 560.00 from holding YuantaP shares Taiwan Electronics or generate 6.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
YuantaP shares Taiwan Electron vs. Xander International
Performance |
| Timeline |
| YuantaP shares Taiwan |
| Xander International |
YuantaP Shares and Xander International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YuantaP Shares and Xander International
The main advantage of trading using opposite YuantaP Shares and Xander International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YuantaP Shares position performs unexpectedly, Xander International 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 Xander International will offset losses from the drop in Xander International's long position.| YuantaP Shares vs. Symtek Automation Asia | YuantaP Shares vs. CTCI Corp | YuantaP Shares vs. Information Technology Total | YuantaP Shares vs. Kinko Optical Co |
| Xander International vs. Chung Hwa Food | Xander International vs. Hunya Foods Co | Xander International vs. Lian Hwa Foods | Xander International vs. X Legend Entertainment 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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