Correlation Between YuantaP Shares and Globe Union
Can any of the company-specific risk be diversified away by investing in both YuantaP Shares and Globe Union 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 Globe Union 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 Globe Union Industrial, you can compare the effects of market volatilities on YuantaP Shares and Globe Union 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 Globe Union. Check out your portfolio center. Please also check ongoing floating volatility patterns of YuantaP Shares and Globe Union.
Diversification Opportunities for YuantaP Shares and Globe Union
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between YuantaP and Globe is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding YuantaP shares Taiwan Electron and Globe Union Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Globe Union Industrial 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 Globe Union. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Globe Union Industrial has no effect on the direction of YuantaP Shares i.e., YuantaP Shares and Globe Union go up and down completely randomly.
Pair Corralation between YuantaP Shares and Globe Union
Assuming the 90 days trading horizon YuantaP shares Taiwan Electronics is expected to generate 0.9 times more return on investment than Globe Union. However, YuantaP shares Taiwan Electronics is 1.11 times less risky than Globe Union. It trades about 0.06 of its potential returns per unit of risk. Globe Union Industrial is currently generating about -0.07 per unit of risk. If you would invest 8,605 in YuantaP shares Taiwan Electronics on September 3, 2024 and sell it today you would earn a total of 1,225 from holding YuantaP shares Taiwan Electronics or generate 14.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
YuantaP shares Taiwan Electron vs. Globe Union Industrial
Performance |
| Timeline |
| YuantaP shares Taiwan |
| Globe Union Industrial |
YuantaP Shares and Globe Union Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YuantaP Shares and Globe Union
The main advantage of trading using opposite YuantaP Shares and Globe Union positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YuantaP Shares position performs unexpectedly, Globe Union 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 Globe Union will offset losses from the drop in Globe Union's long position.| YuantaP Shares vs. Cathay Taiwan 5G | YuantaP Shares vs. Ruentex Development Co | YuantaP Shares vs. Symtek Automation Asia | YuantaP Shares vs. CTCI Corp |
| Globe Union vs. Universal Microelectronics Co | Globe Union vs. AVerMedia Technologies | Globe Union vs. Symtek Automation Asia | Globe Union vs. WiseChip 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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