Correlation Between Yuanta Daily and Fuh Hwa
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By analyzing existing cross correlation between Yuanta Daily CSI and Fuh Hwa 20, you can compare the effects of market volatilities on Yuanta Daily and Fuh Hwa 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 Fuh Hwa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yuanta Daily and Fuh Hwa.
Diversification Opportunities for Yuanta Daily and Fuh Hwa
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Yuanta and Fuh is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Yuanta Daily CSI and Fuh Hwa 20 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fuh Hwa 20 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 Fuh Hwa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fuh Hwa 20 has no effect on the direction of Yuanta Daily i.e., Yuanta Daily and Fuh Hwa go up and down completely randomly.
Pair Corralation between Yuanta Daily and Fuh Hwa
Assuming the 90 days trading horizon Yuanta Daily CSI is expected to generate 3.47 times more return on investment than Fuh Hwa. However, Yuanta Daily is 3.47 times more volatile than Fuh Hwa 20. It trades about 0.02 of its potential returns per unit of risk. Fuh Hwa 20 is currently generating about 0.04 per unit of risk. If you would invest 1,528 in Yuanta Daily CSI on September 12, 2024 and sell it today you would earn a total of 156.00 from holding Yuanta Daily CSI or generate 10.21% 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. Fuh Hwa 20
Performance |
| Timeline |
| Yuanta Daily CSI |
| Fuh Hwa 20 |
Yuanta Daily and Fuh Hwa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yuanta Daily and Fuh Hwa
The main advantage of trading using opposite Yuanta Daily and Fuh Hwa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yuanta Daily position performs unexpectedly, Fuh Hwa 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 Fuh Hwa will offset losses from the drop in Fuh Hwa's long position.| Yuanta Daily vs. YuantaP shares Taiwan Top | Yuanta Daily vs. Yuanta Daily Taiwan | Yuanta Daily vs. Cathay Taiwan 5G | Yuanta Daily vs. Cathay Sustainability High |
| Fuh Hwa vs. YuantaP shares Taiwan Top | Fuh Hwa vs. Yuanta Daily Taiwan | Fuh Hwa vs. Cathay Taiwan 5G | Fuh Hwa vs. Yuanta Daily CSI |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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