Correlation Between CTBC USD and YuantaP Shares
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By analyzing existing cross correlation between CTBC USD Corporate and YuantaP shares Taiwan Top, you can compare the effects of market volatilities on CTBC USD 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 CTBC USD with a short position of YuantaP Shares. Check out your portfolio center. Please also check ongoing floating volatility patterns of CTBC USD and YuantaP Shares.
Diversification Opportunities for CTBC USD and YuantaP Shares
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between CTBC and YuantaP is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding CTBC USD Corporate and YuantaP shares Taiwan Top in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YuantaP shares Taiwan and CTBC USD 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 CTBC USD Corporate 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 Taiwan has no effect on the direction of CTBC USD i.e., CTBC USD and YuantaP Shares go up and down completely randomly.
Pair Corralation between CTBC USD and YuantaP Shares
Assuming the 90 days trading horizon CTBC USD Corporate is expected to generate 0.49 times more return on investment than YuantaP Shares. However, CTBC USD Corporate is 2.04 times less risky than YuantaP Shares. It trades about 0.15 of its potential returns per unit of risk. YuantaP shares Taiwan Top is currently generating about -0.08 per unit of risk. If you would invest 3,597 in CTBC USD Corporate on September 12, 2024 and sell it today you would earn a total of 68.00 from holding CTBC USD Corporate or generate 1.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CTBC USD Corporate vs. YuantaP shares Taiwan Top
Performance |
| Timeline |
| CTBC USD Corporate |
| YuantaP shares Taiwan |
CTBC USD and YuantaP Shares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CTBC USD and YuantaP Shares
The main advantage of trading using opposite CTBC USD and YuantaP Shares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CTBC USD 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.| CTBC USD vs. YuantaP shares Taiwan Top | CTBC USD vs. Yuanta Daily Taiwan | CTBC USD vs. Cathay Taiwan 5G | CTBC USD vs. Yuanta Daily CSI |
| YuantaP Shares vs. Yuanta Daily Taiwan | YuantaP Shares vs. Cathay Taiwan 5G | YuantaP Shares vs. Yuanta Daily CSI | YuantaP Shares vs. Cathay Sustainability High |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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