Correlation Between Yuanta Daily and CTBC USD
Specify exactly 2 symbols:
By analyzing existing cross correlation between Yuanta Daily CSI and CTBC USD Corporate, you can compare the effects of market volatilities on Yuanta Daily 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 Yuanta Daily with a short position of CTBC USD. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yuanta Daily and CTBC USD.
Diversification Opportunities for Yuanta Daily and CTBC USD
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Yuanta and CTBC is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Yuanta Daily CSI 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 Yuanta Daily 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 Yuanta Daily CSI 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 Yuanta Daily i.e., Yuanta Daily and CTBC USD go up and down completely randomly.
Pair Corralation between Yuanta Daily and CTBC USD
Assuming the 90 days trading horizon Yuanta Daily CSI is expected to under-perform the CTBC USD. In addition to that, Yuanta Daily is 3.71 times more volatile than CTBC USD Corporate. It trades about -0.03 of its total potential returns per unit of risk. CTBC USD Corporate is currently generating about 0.18 per unit of volatility. If you would invest 3,548 in CTBC USD Corporate on August 31, 2024 and sell it today you would earn a total of 81.00 from holding CTBC USD Corporate or generate 2.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yuanta Daily CSI vs. CTBC USD Corporate
Performance |
| Timeline |
| Yuanta Daily CSI |
| CTBC USD Corporate |
Yuanta Daily and CTBC USD Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yuanta Daily and CTBC USD
The main advantage of trading using opposite Yuanta Daily and CTBC USD positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yuanta Daily 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.| Yuanta Daily vs. Yuanta Daily Taiwan | Yuanta Daily vs. Cathay Taiwan 5G | Yuanta Daily vs. Fubon FTSE Vietnam | Yuanta Daily vs. Fuh Hwa Emerging |
| CTBC USD vs. Yuanta Daily Taiwan | CTBC USD vs. Cathay Taiwan 5G | CTBC USD vs. Yuanta Daily CSI | CTBC USD 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |