Correlation Between United Radiant and Yuanta Futures
Can any of the company-specific risk be diversified away by investing in both United Radiant 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 United Radiant and Yuanta Futures into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between United Radiant Technology and Yuanta Futures Co, you can compare the effects of market volatilities on United Radiant 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 United Radiant with a short position of Yuanta Futures. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Radiant and Yuanta Futures.
Diversification Opportunities for United Radiant and Yuanta Futures
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between United and Yuanta is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding United Radiant Technology and Yuanta Futures Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yuanta Futures and United Radiant 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 United Radiant Technology 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 United Radiant i.e., United Radiant and Yuanta Futures go up and down completely randomly.
Pair Corralation between United Radiant and Yuanta Futures
Assuming the 90 days trading horizon United Radiant Technology is expected to generate 1.6 times more return on investment than Yuanta Futures. However, United Radiant is 1.6 times more volatile than Yuanta Futures Co. It trades about 0.08 of its potential returns per unit of risk. Yuanta Futures Co is currently generating about 0.04 per unit of risk. If you would invest 1,900 in United Radiant Technology on September 1, 2024 and sell it today you would earn a total of 390.00 from holding United Radiant Technology or generate 20.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.22% |
| Values | Daily Returns |
United Radiant Technology vs. Yuanta Futures Co
Performance |
| Timeline |
| United Radiant Technology |
| Yuanta Futures |
United Radiant and Yuanta Futures Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United Radiant and Yuanta Futures
The main advantage of trading using opposite United Radiant and Yuanta Futures positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Radiant 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.| United Radiant vs. Hon Hai Precision | United Radiant vs. Delta Electronics | United Radiant vs. LARGAN Precision Co | United Radiant vs. Yageo Corp |
| 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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