Correlation Between Grand Ocean and Yuanta Financial
Can any of the company-specific risk be diversified away by investing in both Grand Ocean and Yuanta Financial 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 Grand Ocean and Yuanta Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grand Ocean Retail and Yuanta Financial Holdings, you can compare the effects of market volatilities on Grand Ocean and Yuanta Financial 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 Grand Ocean with a short position of Yuanta Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grand Ocean and Yuanta Financial.
Diversification Opportunities for Grand Ocean and Yuanta Financial
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Grand and Yuanta is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Grand Ocean Retail and Yuanta Financial Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yuanta Financial Holdings and Grand Ocean 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 Grand Ocean Retail are associated (or correlated) with Yuanta Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yuanta Financial Holdings has no effect on the direction of Grand Ocean i.e., Grand Ocean and Yuanta Financial go up and down completely randomly.
Pair Corralation between Grand Ocean and Yuanta Financial
Assuming the 90 days trading horizon Grand Ocean Retail is expected to under-perform the Yuanta Financial. In addition to that, Grand Ocean is 1.84 times more volatile than Yuanta Financial Holdings. It trades about -0.02 of its total potential returns per unit of risk. Yuanta Financial Holdings is currently generating about 0.09 per unit of volatility. If you would invest 2,245 in Yuanta Financial Holdings on November 28, 2024 and sell it today you would earn a total of 1,405 from holding Yuanta Financial Holdings or generate 62.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grand Ocean Retail vs. Yuanta Financial Holdings
Performance |
| Timeline |
| Grand Ocean Retail |
| Yuanta Financial Holdings |
Grand Ocean and Yuanta Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grand Ocean and Yuanta Financial
The main advantage of trading using opposite Grand Ocean and Yuanta Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grand Ocean position performs unexpectedly, Yuanta Financial 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 Financial will offset losses from the drop in Yuanta Financial's long position.| Grand Ocean vs. First Steamship Co | Grand Ocean vs. Far Eastern Department | Grand Ocean vs. LongDa Construction Development | Grand Ocean vs. Collins Co |
| Yuanta Financial vs. First Financial Holding | Yuanta Financial vs. Taishin Financial Holding | Yuanta Financial vs. CTBC Financial Holding | Yuanta Financial vs. Mega Financial Holding |
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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