Correlation Between Yuanta Financial and Chyang Sheng
Can any of the company-specific risk be diversified away by investing in both Yuanta Financial and Chyang Sheng 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 Financial and Chyang Sheng into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Yuanta Financial Holdings and Chyang Sheng Dyeing, you can compare the effects of market volatilities on Yuanta Financial and Chyang Sheng 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 Financial with a short position of Chyang Sheng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yuanta Financial and Chyang Sheng.
Diversification Opportunities for Yuanta Financial and Chyang Sheng
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Yuanta and Chyang is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Yuanta Financial Holdings and Chyang Sheng Dyeing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chyang Sheng Dyeing and Yuanta Financial 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 Financial Holdings are associated (or correlated) with Chyang Sheng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chyang Sheng Dyeing has no effect on the direction of Yuanta Financial i.e., Yuanta Financial and Chyang Sheng go up and down completely randomly.
Pair Corralation between Yuanta Financial and Chyang Sheng
Assuming the 90 days trading horizon Yuanta Financial Holdings is expected to generate 0.93 times more return on investment than Chyang Sheng. However, Yuanta Financial Holdings is 1.07 times less risky than Chyang Sheng. It trades about 0.21 of its potential returns per unit of risk. Chyang Sheng Dyeing is currently generating about 0.08 per unit of risk. If you would invest 3,295 in Yuanta Financial Holdings on September 13, 2024 and sell it today you would earn a total of 175.00 from holding Yuanta Financial Holdings or generate 5.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yuanta Financial Holdings vs. Chyang Sheng Dyeing
Performance |
| Timeline |
| Yuanta Financial Holdings |
| Chyang Sheng Dyeing |
Yuanta Financial and Chyang Sheng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yuanta Financial and Chyang Sheng
The main advantage of trading using opposite Yuanta Financial and Chyang Sheng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yuanta Financial position performs unexpectedly, Chyang Sheng 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 Chyang Sheng will offset losses from the drop in Chyang Sheng's long position.| Yuanta Financial vs. Central Reinsurance Corp | Yuanta Financial vs. Huaku Development Co | Yuanta Financial vs. Fubon Financial Holding | Yuanta Financial vs. Chailease Holding Co |
| Chyang Sheng vs. Feng Tay Enterprises | Chyang Sheng vs. Ruentex Development Co | Chyang Sheng vs. WiseChip Semiconductor | Chyang Sheng vs. Novatek Microelectronics Corp |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |