Correlation Between IBF Financial and Yuanta Futures
Can any of the company-specific risk be diversified away by investing in both IBF Financial and Yuanta Futures 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 IBF Financial and Yuanta Futures into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IBF Financial Holdings and Yuanta Futures Co, you can compare the effects of market volatilities on IBF Financial and Yuanta Futures 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 IBF Financial with a short position of Yuanta Futures. Check out your portfolio center. Please also check ongoing floating volatility patterns of IBF Financial and Yuanta Futures.
Diversification Opportunities for IBF Financial and Yuanta Futures
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between IBF and Yuanta is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding IBF Financial Holdings and Yuanta Futures Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yuanta Futures and IBF 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 IBF Financial Holdings are associated (or correlated) with Yuanta Futures. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yuanta Futures has no effect on the direction of IBF Financial i.e., IBF Financial and Yuanta Futures go up and down completely randomly.
Pair Corralation between IBF Financial and Yuanta Futures
Assuming the 90 days trading horizon IBF Financial is expected to generate 25.1 times less return on investment than Yuanta Futures. In addition to that, IBF Financial is 1.11 times more volatile than Yuanta Futures Co. It trades about 0.0 of its total potential returns per unit of risk. Yuanta Futures Co is currently generating about 0.04 per unit of volatility. If you would invest 8,613 in Yuanta Futures Co on September 1, 2024 and sell it today you would earn a total of 477.00 from holding Yuanta Futures Co or generate 5.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.22% |
| Values | Daily Returns |
IBF Financial Holdings vs. Yuanta Futures Co
Performance |
| Timeline |
| IBF Financial Holdings |
| Yuanta Futures |
IBF Financial and Yuanta Futures Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IBF Financial and Yuanta Futures
The main advantage of trading using opposite IBF Financial and Yuanta Futures positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IBF Financial position performs unexpectedly, Yuanta Futures 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 Futures will offset losses from the drop in Yuanta Futures' long position.| IBF Financial vs. Silicon Power Computer | IBF Financial vs. Voltronic Power Technology | IBF Financial vs. Tai Tung Communication | IBF Financial vs. Asmedia Technology |
| Yuanta Futures vs. United Radiant Technology | Yuanta Futures vs. Johnson Chemical Pharmaceutical | Yuanta Futures vs. Univacco Technology | Yuanta Futures vs. Chi Sheng Chemical |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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