Correlation Between Sinopac TAIEX and CTBC USD
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By analyzing existing cross correlation between Sinopac TAIEX ETF and CTBC USD Corporate, you can compare the effects of market volatilities on Sinopac TAIEX and CTBC USD 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 Sinopac TAIEX with a short position of CTBC USD. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinopac TAIEX and CTBC USD.
Diversification Opportunities for Sinopac TAIEX and CTBC USD
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Sinopac and CTBC is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Sinopac TAIEX ETF and CTBC USD Corporate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CTBC USD Corporate and Sinopac TAIEX 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 Sinopac TAIEX ETF are associated (or correlated) with CTBC USD. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CTBC USD Corporate has no effect on the direction of Sinopac TAIEX i.e., Sinopac TAIEX and CTBC USD go up and down completely randomly.
Pair Corralation between Sinopac TAIEX and CTBC USD
Assuming the 90 days trading horizon Sinopac TAIEX ETF is expected to generate 2.34 times more return on investment than CTBC USD. However, Sinopac TAIEX is 2.34 times more volatile than CTBC USD Corporate. It trades about 0.09 of its potential returns per unit of risk. CTBC USD Corporate is currently generating about 0.05 per unit of risk. If you would invest 8,630 in Sinopac TAIEX ETF on September 2, 2024 and sell it today you would earn a total of 2,535 from holding Sinopac TAIEX ETF or generate 29.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sinopac TAIEX ETF vs. CTBC USD Corporate
Performance |
| Timeline |
| Sinopac TAIEX ETF |
| CTBC USD Corporate |
Sinopac TAIEX and CTBC USD Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinopac TAIEX and CTBC USD
The main advantage of trading using opposite Sinopac TAIEX and CTBC USD positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinopac TAIEX position performs unexpectedly, CTBC USD 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 CTBC USD will offset losses from the drop in CTBC USD's long position.| Sinopac TAIEX vs. Sinopac Securities Corp | Sinopac TAIEX vs. Sinopac ICE 10 | Sinopac TAIEX vs. Sinopac Securities Corp | Sinopac TAIEX vs. CTBC USD Corporate |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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