Correlation Between STL Technology and Yuanta Futures
Can any of the company-specific risk be diversified away by investing in both STL Technology 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 STL Technology and Yuanta Futures into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between STL Technology Co and Yuanta Futures Co, you can compare the effects of market volatilities on STL Technology 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 STL Technology with a short position of Yuanta Futures. Check out your portfolio center. Please also check ongoing floating volatility patterns of STL Technology and Yuanta Futures.
Diversification Opportunities for STL Technology and Yuanta Futures
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between STL and Yuanta is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding STL Technology Co and Yuanta Futures Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yuanta Futures and STL Technology 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 STL Technology Co 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 STL Technology i.e., STL Technology and Yuanta Futures go up and down completely randomly.
Pair Corralation between STL Technology and Yuanta Futures
Assuming the 90 days trading horizon STL Technology Co is expected to generate 10.58 times more return on investment than Yuanta Futures. However, STL Technology is 10.58 times more volatile than Yuanta Futures Co. It trades about 0.32 of its potential returns per unit of risk. Yuanta Futures Co is currently generating about 0.02 per unit of risk. If you would invest 3,905 in STL Technology Co on September 12, 2024 and sell it today you would earn a total of 1,895 from holding STL Technology Co or generate 48.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
STL Technology Co vs. Yuanta Futures Co
Performance |
| Timeline |
| STL Technology |
| Yuanta Futures |
STL Technology and Yuanta Futures Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with STL Technology and Yuanta Futures
The main advantage of trading using opposite STL Technology and Yuanta Futures positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if STL Technology 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.| STL Technology vs. Voltronic Power Technology | STL Technology vs. Advanced Energy Solution | STL Technology vs. Simplo Technology Co | STL Technology vs. Amtran Technology Co |
| Yuanta Futures vs. IBF Financial Holdings | Yuanta Futures vs. Capital Securities Corp | Yuanta Futures vs. President Securities Corp | Yuanta Futures vs. China Bills Finance |
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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