Correlation Between Tachan Securities and Yuanta Futures
Can any of the company-specific risk be diversified away by investing in both Tachan Securities 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 Tachan Securities and Yuanta Futures into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tachan Securities Co and Yuanta Futures Co, you can compare the effects of market volatilities on Tachan Securities 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 Tachan Securities with a short position of Yuanta Futures. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tachan Securities and Yuanta Futures.
Diversification Opportunities for Tachan Securities and Yuanta Futures
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Tachan and Yuanta is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Tachan Securities 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 Tachan Securities 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 Tachan Securities 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 Tachan Securities i.e., Tachan Securities and Yuanta Futures go up and down completely randomly.
Pair Corralation between Tachan Securities and Yuanta Futures
Assuming the 90 days trading horizon Tachan Securities Co is expected to under-perform the Yuanta Futures. But the stock apears to be less risky and, when comparing its historical volatility, Tachan Securities Co is 2.97 times less risky than Yuanta Futures. The stock trades about -0.01 of its potential returns per unit of risk. The Yuanta Futures Co is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 8,200 in Yuanta Futures Co on September 12, 2024 and sell it today you would earn a total of 780.00 from holding Yuanta Futures Co or generate 9.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tachan Securities Co vs. Yuanta Futures Co
Performance |
| Timeline |
| Tachan Securities |
| Yuanta Futures |
Tachan Securities and Yuanta Futures Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tachan Securities and Yuanta Futures
The main advantage of trading using opposite Tachan Securities and Yuanta Futures positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tachan Securities 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.| Tachan Securities vs. IBF Financial Holdings | Tachan Securities vs. Capital Securities Corp | Tachan Securities vs. President Securities Corp | Tachan Securities vs. China Bills Finance |
| 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 Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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