Correlation Between YuantaP Shares and Yuanta EURO
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By analyzing existing cross correlation between YuantaP shares Taiwan GreTai and Yuanta EURO STOXX, you can compare the effects of market volatilities on YuantaP Shares and Yuanta EURO 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 Yuanta EURO. Check out your portfolio center. Please also check ongoing floating volatility patterns of YuantaP Shares and Yuanta EURO.
Diversification Opportunities for YuantaP Shares and Yuanta EURO
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between YuantaP and Yuanta is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding YuantaP shares Taiwan GreTai and Yuanta EURO STOXX in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yuanta EURO STOXX 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 GreTai are associated (or correlated) with Yuanta EURO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yuanta EURO STOXX has no effect on the direction of YuantaP Shares i.e., YuantaP Shares and Yuanta EURO go up and down completely randomly.
Pair Corralation between YuantaP Shares and Yuanta EURO
Assuming the 90 days trading horizon YuantaP shares Taiwan GreTai is expected to under-perform the Yuanta EURO. In addition to that, YuantaP Shares is 1.25 times more volatile than Yuanta EURO STOXX. It trades about -0.13 of its total potential returns per unit of risk. Yuanta EURO STOXX is currently generating about -0.16 per unit of volatility. If you would invest 3,565 in Yuanta EURO STOXX on August 31, 2024 and sell it today you would lose (121.00) from holding Yuanta EURO STOXX or give up 3.39% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
YuantaP shares Taiwan GreTai vs. Yuanta EURO STOXX
Performance |
| Timeline |
| YuantaP shares Taiwan |
| Yuanta EURO STOXX |
YuantaP Shares and Yuanta EURO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YuantaP Shares and Yuanta EURO
The main advantage of trading using opposite YuantaP Shares and Yuanta EURO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YuantaP Shares position performs unexpectedly, Yuanta EURO 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 Yuanta EURO will offset losses from the drop in Yuanta EURO's long position.| YuantaP Shares vs. Yuanta Daily Taiwan | YuantaP Shares vs. Cathay Taiwan 5G | YuantaP Shares vs. Yuanta Daily CSI | YuantaP Shares vs. Fubon FTSE Vietnam |
| Yuanta EURO vs. Yuanta Daily Taiwan | Yuanta EURO vs. Cathay Taiwan 5G | Yuanta EURO vs. Yuanta Daily CSI | Yuanta EURO vs. Fubon FTSE Vietnam |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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