Correlation Between YuantaP Shares and Fun Yours
Can any of the company-specific risk be diversified away by investing in both YuantaP Shares and Fun Yours 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 Fun Yours 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 Fun Yours Technology, you can compare the effects of market volatilities on YuantaP Shares and Fun Yours 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 Fun Yours. Check out your portfolio center. Please also check ongoing floating volatility patterns of YuantaP Shares and Fun Yours.
Diversification Opportunities for YuantaP Shares and Fun Yours
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between YuantaP and Fun is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding YuantaP shares Taiwan Electron and Fun Yours Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fun Yours 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 Fun Yours. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fun Yours Technology has no effect on the direction of YuantaP Shares i.e., YuantaP Shares and Fun Yours go up and down completely randomly.
Pair Corralation between YuantaP Shares and Fun Yours
Assuming the 90 days trading horizon YuantaP shares Taiwan Electronics is expected to under-perform the Fun Yours. But the etf apears to be less risky and, when comparing its historical volatility, YuantaP shares Taiwan Electronics is 1.38 times less risky than Fun Yours. The etf trades about -0.13 of its potential returns per unit of risk. The Fun Yours Technology is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 4,900 in Fun Yours Technology on August 28, 2024 and sell it today you would earn a total of 140.00 from holding Fun Yours Technology or generate 2.86% return on investment 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. Fun Yours Technology
Performance |
| Timeline |
| YuantaP shares Taiwan |
| Fun Yours Technology |
YuantaP Shares and Fun Yours Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YuantaP Shares and Fun Yours
The main advantage of trading using opposite YuantaP Shares and Fun Yours positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YuantaP Shares position performs unexpectedly, Fun Yours 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 Fun Yours will offset losses from the drop in Fun Yours' long position.The idea behind YuantaP shares Taiwan Electronics and Fun Yours Technology pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Fun Yours vs. ABC Taiwan Electronics | Fun Yours vs. Chander Electronics Corp | Fun Yours vs. U Media Communications | Fun Yours vs. Advanced Wireless Semiconductor |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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