Correlation Between Yuanta Global and Yuanta Daily
Can any of the company-specific risk be diversified away by investing in both Yuanta Global and Yuanta Daily 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 Global and Yuanta Daily into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Yuanta Global NexGen and Yuanta Daily Taiwan, you can compare the effects of market volatilities on Yuanta Global 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 Global with a short position of Yuanta Daily. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yuanta Global and Yuanta Daily.
Diversification Opportunities for Yuanta Global and Yuanta Daily
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Yuanta and Yuanta is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Yuanta Global NexGen 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 Yuanta Global 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 Global NexGen 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 Yuanta Global i.e., Yuanta Global and Yuanta Daily go up and down completely randomly.
Pair Corralation between Yuanta Global and Yuanta Daily
Assuming the 90 days trading horizon Yuanta Global NexGen is expected to under-perform the Yuanta Daily. In addition to that, Yuanta Global is 1.25 times more volatile than Yuanta Daily Taiwan. It trades about -0.24 of its total potential returns per unit of risk. Yuanta Daily Taiwan is currently generating about 0.23 per unit of volatility. If you would invest 2,267 in Yuanta Daily Taiwan on December 11, 2024 and sell it today you would earn a total of 86.00 from holding Yuanta Daily Taiwan or generate 3.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yuanta Global NexGen vs. Yuanta Daily Taiwan
Performance |
| Timeline |
| Yuanta Global NexGen |
| Yuanta Daily Taiwan |
Yuanta Global and Yuanta Daily Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yuanta Global and Yuanta Daily
The main advantage of trading using opposite Yuanta Global and Yuanta Daily positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yuanta Global 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.| Yuanta Global vs. Yuanta Daily SP | Yuanta Global vs. Yuanta Securities Investment | Yuanta Global vs. Yuanta SP GSCI | Yuanta Global vs. Yuanta SP GSCI |
| Yuanta Daily vs. YuantaP shares Taiwan Top | Yuanta Daily vs. Cathay Taiwan 5G | Yuanta Daily vs. Yuanta Daily CSI | Yuanta Daily 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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