Correlation Between Yuanta Daily and Yuanta Securities
Can any of the company-specific risk be diversified away by investing in both Yuanta Daily and Yuanta Securities at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Yuanta Daily and Yuanta Securities into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Yuanta Daily SP and Yuanta Securities Investment, you can compare the effects of market volatilities on Yuanta Daily and Yuanta Securities 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 Yuanta Securities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yuanta Daily and Yuanta Securities.
Diversification Opportunities for Yuanta Daily and Yuanta Securities
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Yuanta and Yuanta is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Yuanta Daily SP and Yuanta Securities Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yuanta Securities 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 SP are associated (or correlated) with Yuanta Securities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yuanta Securities has no effect on the direction of Yuanta Daily i.e., Yuanta Daily and Yuanta Securities go up and down completely randomly.
Pair Corralation between Yuanta Daily and Yuanta Securities
Assuming the 90 days trading horizon Yuanta Daily SP is expected to under-perform the Yuanta Securities. But the etf apears to be less risky and, when comparing its historical volatility, Yuanta Daily SP is 1.01 times less risky than Yuanta Securities. The etf trades about -0.11 of its potential returns per unit of risk. The Yuanta Securities Investment is currently generating about -0.09 of returns per unit of risk over similar time horizon. If you would invest 1,058 in Yuanta Securities Investment on September 2, 2024 and sell it today you would lose (107.00) from holding Yuanta Securities Investment or give up 10.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yuanta Daily SP vs. Yuanta Securities Investment
Performance |
| Timeline |
| Yuanta Daily SP |
| Yuanta Securities |
Yuanta Daily and Yuanta Securities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yuanta Daily and Yuanta Securities
The main advantage of trading using opposite Yuanta Daily and Yuanta Securities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yuanta Daily position performs unexpectedly, Yuanta Securities 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 Securities will offset losses from the drop in Yuanta Securities' long position.| Yuanta Daily vs. Yuanta Daily CSI | Yuanta Daily vs. Fubon FTSE Vietnam | Yuanta Daily vs. Paradigm SP GSCI |
| Yuanta Securities vs. Yuanta Daily SP | Yuanta Securities vs. Yuanta Securities Investment | Yuanta Securities vs. Yuanta SP GSCI | Yuanta Securities vs. Yuanta Global NexGen |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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