Correlation Between Capital Taiex and YuantaP Shares
Can any of the company-specific risk be diversified away by investing in both Capital Taiex and YuantaP Shares 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 Capital Taiex and YuantaP Shares into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Capital Taiex Daily and YuantaP shares MSCI Taiwan, you can compare the effects of market volatilities on Capital Taiex and YuantaP Shares 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 Capital Taiex with a short position of YuantaP Shares. Check out your portfolio center. Please also check ongoing floating volatility patterns of Capital Taiex and YuantaP Shares.
Diversification Opportunities for Capital Taiex and YuantaP Shares
-0.92 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Capital and YuantaP is -0.92. Overlapping area represents the amount of risk that can be diversified away by holding Capital Taiex Daily and YuantaP shares MSCI Taiwan in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YuantaP shares MSCI and Capital 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 Capital Taiex Daily are associated (or correlated) with YuantaP Shares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of YuantaP shares MSCI has no effect on the direction of Capital Taiex i.e., Capital Taiex and YuantaP Shares go up and down completely randomly.
Pair Corralation between Capital Taiex and YuantaP Shares
Assuming the 90 days trading horizon Capital Taiex Daily is expected to under-perform the YuantaP Shares. But the etf apears to be less risky and, when comparing its historical volatility, Capital Taiex Daily is 1.38 times less risky than YuantaP Shares. The etf trades about -0.05 of its potential returns per unit of risk. The YuantaP shares MSCI Taiwan is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 9,225 in YuantaP shares MSCI Taiwan on October 23, 2024 and sell it today you would lose (35.00) from holding YuantaP shares MSCI Taiwan or give up 0.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Capital Taiex Daily vs. YuantaP shares MSCI Taiwan
Performance |
| Timeline |
| Capital Taiex Daily |
| YuantaP shares MSCI |
Capital Taiex and YuantaP Shares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Capital Taiex and YuantaP Shares
The main advantage of trading using opposite Capital Taiex and YuantaP Shares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Capital Taiex position performs unexpectedly, YuantaP Shares 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 YuantaP Shares will offset losses from the drop in YuantaP Shares' long position.| Capital Taiex vs. YuantaP shares Taiwan Top | Capital Taiex vs. Yuanta Daily Taiwan | Capital Taiex vs. Cathay Taiwan 5G | Capital Taiex vs. Yuanta Daily CSI |
| YuantaP Shares vs. YuantaP shares Taiwan Top | YuantaP Shares vs. YuantaP shares Taiwan GreTai | YuantaP Shares vs. YuantaP shares SSE50 | YuantaP Shares vs. YuantaP shares Taiwan Mid Cap |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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