Correlation Between Yuanta 10 and Yuanta Daily
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By analyzing existing cross correlation between Yuanta 10 Investment and Yuanta Daily CSI, you can compare the effects of market volatilities on Yuanta 10 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 Yuanta 10 with a short position of Yuanta Daily. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yuanta 10 and Yuanta Daily.
Diversification Opportunities for Yuanta 10 and Yuanta Daily
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Yuanta and Yuanta is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Yuanta 10 Investment and Yuanta Daily CSI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yuanta Daily CSI and Yuanta 10 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 10 Investment 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 CSI has no effect on the direction of Yuanta 10 i.e., Yuanta 10 and Yuanta Daily go up and down completely randomly.
Pair Corralation between Yuanta 10 and Yuanta Daily
Assuming the 90 days trading horizon Yuanta 10 Investment is expected to generate 0.24 times more return on investment than Yuanta Daily. However, Yuanta 10 Investment is 4.08 times less risky than Yuanta Daily. It trades about 0.13 of its potential returns per unit of risk. Yuanta Daily CSI is currently generating about -0.12 per unit of risk. If you would invest 3,172 in Yuanta 10 Investment on August 27, 2024 and sell it today you would earn a total of 48.00 from holding Yuanta 10 Investment or generate 1.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yuanta 10 Investment vs. Yuanta Daily CSI
Performance |
| Timeline |
| Yuanta 10 Investment |
| Yuanta Daily CSI |
Yuanta 10 and Yuanta Daily Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yuanta 10 and Yuanta Daily
The main advantage of trading using opposite Yuanta 10 and Yuanta Daily positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yuanta 10 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.The idea behind Yuanta 10 Investment and Yuanta Daily CSI pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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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