Correlation Between Cathay Bloomberg and Yuanta Daily
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By analyzing existing cross correlation between Cathay Bloomberg Barclays and Yuanta Daily Taiwan, you can compare the effects of market volatilities on Cathay Bloomberg and Yuanta Daily 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 Cathay Bloomberg with a short position of Yuanta Daily. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cathay Bloomberg and Yuanta Daily.
Diversification Opportunities for Cathay Bloomberg and Yuanta Daily
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cathay and Yuanta is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Cathay Bloomberg Barclays and Yuanta Daily Taiwan in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yuanta Daily Taiwan and Cathay Bloomberg 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 Cathay Bloomberg Barclays are associated (or correlated) with Yuanta Daily. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yuanta Daily Taiwan has no effect on the direction of Cathay Bloomberg i.e., Cathay Bloomberg and Yuanta Daily go up and down completely randomly.
Pair Corralation between Cathay Bloomberg and Yuanta Daily
Assuming the 90 days trading horizon Cathay Bloomberg Barclays is expected to generate 0.47 times more return on investment than Yuanta Daily. However, Cathay Bloomberg Barclays is 2.13 times less risky than Yuanta Daily. It trades about 0.02 of its potential returns per unit of risk. Yuanta Daily Taiwan is currently generating about -0.09 per unit of risk. If you would invest 3,195 in Cathay Bloomberg Barclays on September 2, 2024 and sell it today you would earn a total of 88.00 from holding Cathay Bloomberg Barclays or generate 2.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cathay Bloomberg Barclays vs. Yuanta Daily Taiwan
Performance |
| Timeline |
| Cathay Bloomberg Barclays |
| Yuanta Daily Taiwan |
Cathay Bloomberg and Yuanta Daily Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cathay Bloomberg and Yuanta Daily
The main advantage of trading using opposite Cathay Bloomberg and Yuanta Daily positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cathay Bloomberg position performs unexpectedly, Yuanta Daily 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 Daily will offset losses from the drop in Yuanta Daily's long position.| Cathay Bloomberg vs. Yuanta Daily CSI | Cathay Bloomberg vs. Fubon FTSE Vietnam | Cathay Bloomberg vs. Paradigm SP GSCI |
| Yuanta Daily vs. Yuanta Daily CSI | Yuanta Daily vs. Fubon FTSE Vietnam | Yuanta Daily vs. Paradigm SP GSCI |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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