Correlation Between Sinopac TAIEX and CTBC 20
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By analyzing existing cross correlation between Sinopac TAIEX ETF and CTBC 20 Year, you can compare the effects of market volatilities on Sinopac TAIEX and CTBC 20 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 20. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinopac TAIEX and CTBC 20.
Diversification Opportunities for Sinopac TAIEX and CTBC 20
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Sinopac and CTBC is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Sinopac TAIEX ETF and CTBC 20 Year in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CTBC 20 Year 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 20. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CTBC 20 Year has no effect on the direction of Sinopac TAIEX i.e., Sinopac TAIEX and CTBC 20 go up and down completely randomly.
Pair Corralation between Sinopac TAIEX and CTBC 20
Assuming the 90 days trading horizon Sinopac TAIEX ETF is expected to generate 2.06 times more return on investment than CTBC 20. However, Sinopac TAIEX is 2.06 times more volatile than CTBC 20 Year. It trades about 0.09 of its potential returns per unit of risk. CTBC 20 Year is currently generating about 0.04 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 | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sinopac TAIEX ETF vs. CTBC 20 Year
Performance |
| Timeline |
| Sinopac TAIEX ETF |
| CTBC 20 Year |
Sinopac TAIEX and CTBC 20 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinopac TAIEX and CTBC 20
The main advantage of trading using opposite Sinopac TAIEX and CTBC 20 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinopac TAIEX position performs unexpectedly, CTBC 20 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 20 will offset losses from the drop in CTBC 20'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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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