Correlation Between Yuanta Global and Yuanta Securities
Can any of the company-specific risk be diversified away by investing in both Yuanta Global and Yuanta Securities 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 Securities 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 Securities Investment, you can compare the effects of market volatilities on Yuanta Global and Yuanta Securities 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 Securities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yuanta Global and Yuanta Securities.
Diversification Opportunities for Yuanta Global and Yuanta Securities
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Yuanta and Yuanta is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Yuanta Global NexGen and Yuanta Securities Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yuanta Securities 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 Securities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yuanta Securities has no effect on the direction of Yuanta Global i.e., Yuanta Global and Yuanta Securities go up and down completely randomly.
Pair Corralation between Yuanta Global and Yuanta Securities
Assuming the 90 days trading horizon Yuanta Global NexGen is expected to generate 1.62 times more return on investment than Yuanta Securities. However, Yuanta Global is 1.62 times more volatile than Yuanta Securities Investment. It trades about 0.07 of its potential returns per unit of risk. Yuanta Securities Investment is currently generating about -0.06 per unit of risk. If you would invest 2,672 in Yuanta Global NexGen on August 31, 2024 and sell it today you would earn a total of 998.00 from holding Yuanta Global NexGen or generate 37.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yuanta Global NexGen vs. Yuanta Securities Investment
Performance |
| Timeline |
| Yuanta Global NexGen |
| Yuanta Securities |
Yuanta Global and Yuanta Securities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yuanta Global and Yuanta Securities
The main advantage of trading using opposite Yuanta Global and Yuanta Securities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yuanta Global position performs unexpectedly, Yuanta Securities 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 Securities will offset losses from the drop in Yuanta Securities' 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 Securities vs. Yuanta Daily SP | Yuanta Securities vs. Yuanta Securities Investment | Yuanta Securities vs. Yuanta SP GSCI | Yuanta Securities vs. Yuanta Global NexGen |
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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