Correlation Between Yuanta Financial and Launch Technologies
Can any of the company-specific risk be diversified away by investing in both Yuanta Financial and Launch Technologies 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 Launch Technologies 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 Launch Technologies Co, you can compare the effects of market volatilities on Yuanta Financial and Launch Technologies 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 Launch Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yuanta Financial and Launch Technologies.
Diversification Opportunities for Yuanta Financial and Launch Technologies
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Yuanta and Launch is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Yuanta Financial Holdings and Launch Technologies Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Launch Technologies 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 Launch Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Launch Technologies has no effect on the direction of Yuanta Financial i.e., Yuanta Financial and Launch Technologies go up and down completely randomly.
Pair Corralation between Yuanta Financial and Launch Technologies
Assuming the 90 days trading horizon Yuanta Financial Holdings is expected to generate 2.46 times more return on investment than Launch Technologies. However, Yuanta Financial is 2.46 times more volatile than Launch Technologies Co. It trades about 0.17 of its potential returns per unit of risk. Launch Technologies Co is currently generating about -0.16 per unit of risk. If you would invest 3,180 in Yuanta Financial Holdings on September 13, 2024 and sell it today you would earn a total of 290.00 from holding Yuanta Financial Holdings or generate 9.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 81.4% |
| Values | Daily Returns |
Yuanta Financial Holdings vs. Launch Technologies Co
Performance |
| Timeline |
| Yuanta Financial Holdings |
| Launch Technologies |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Yuanta Financial and Launch Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yuanta Financial and Launch Technologies
The main advantage of trading using opposite Yuanta Financial and Launch Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yuanta Financial position performs unexpectedly, Launch Technologies 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 Launch Technologies will offset losses from the drop in Launch Technologies' 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 |
| Launch Technologies vs. Shinkong Insurance Co | Launch Technologies vs. Hua Nan Financial | Launch Technologies vs. APEX International Financial | Launch Technologies vs. Yuanta Financial Holdings |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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