Correlation Between Yuanta Financial and Global Mixed
Can any of the company-specific risk be diversified away by investing in both Yuanta Financial and Global Mixed 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 Global Mixed 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 Global Mixed Mode Technology, you can compare the effects of market volatilities on Yuanta Financial and Global Mixed 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 Global Mixed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yuanta Financial and Global Mixed.
Diversification Opportunities for Yuanta Financial and Global Mixed
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Yuanta and Global is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Yuanta Financial Holdings and Global Mixed Mode Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Mixed Mode 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 Global Mixed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Mixed Mode has no effect on the direction of Yuanta Financial i.e., Yuanta Financial and Global Mixed go up and down completely randomly.
Pair Corralation between Yuanta Financial and Global Mixed
Assuming the 90 days trading horizon Yuanta Financial is expected to generate 1.81 times less return on investment than Global Mixed. In addition to that, Yuanta Financial is 1.05 times more volatile than Global Mixed Mode Technology. It trades about 0.25 of its total potential returns per unit of risk. Global Mixed Mode Technology is currently generating about 0.48 per unit of volatility. If you would invest 22,550 in Global Mixed Mode Technology on November 28, 2024 and sell it today you would earn a total of 1,800 from holding Global Mixed Mode Technology or generate 7.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yuanta Financial Holdings vs. Global Mixed Mode Technology
Performance |
| Timeline |
| Yuanta Financial Holdings |
| Global Mixed Mode |
Yuanta Financial and Global Mixed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yuanta Financial and Global Mixed
The main advantage of trading using opposite Yuanta Financial and Global Mixed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yuanta Financial position performs unexpectedly, Global Mixed 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 Global Mixed will offset losses from the drop in Global Mixed's long position.| Yuanta Financial vs. First Financial Holding | Yuanta Financial vs. Taishin Financial Holding | Yuanta Financial vs. CTBC Financial Holding | Yuanta Financial vs. Mega Financial Holding |
| Global Mixed vs. Sitronix Technology Corp | Global Mixed vs. Novatek Microelectronics Corp | Global Mixed vs. Global Unichip Corp | Global Mixed vs. Holtek Semiconductor |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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