Correlation Between Yuanta Futures and Horizon Securities
Can any of the company-specific risk be diversified away by investing in both Yuanta Futures and Horizon Securities 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 Yuanta Futures and Horizon Securities into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Yuanta Futures Co and Horizon Securities Co, you can compare the effects of market volatilities on Yuanta Futures and Horizon Securities 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 Yuanta Futures with a short position of Horizon Securities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yuanta Futures and Horizon Securities.
Diversification Opportunities for Yuanta Futures and Horizon Securities
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Yuanta and Horizon is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Yuanta Futures Co and Horizon Securities Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Horizon Securities and Yuanta Futures 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 Yuanta Futures Co are associated (or correlated) with Horizon Securities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Horizon Securities has no effect on the direction of Yuanta Futures i.e., Yuanta Futures and Horizon Securities go up and down completely randomly.
Pair Corralation between Yuanta Futures and Horizon Securities
Assuming the 90 days trading horizon Yuanta Futures Co is expected to generate 0.8 times more return on investment than Horizon Securities. However, Yuanta Futures Co is 1.25 times less risky than Horizon Securities. It trades about 0.02 of its potential returns per unit of risk. Horizon Securities Co is currently generating about -0.02 per unit of risk. If you would invest 8,783 in Yuanta Futures Co on August 29, 2024 and sell it today you would earn a total of 267.00 from holding Yuanta Futures Co or generate 3.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yuanta Futures Co vs. Horizon Securities Co
Performance |
| Timeline |
| Yuanta Futures |
| Horizon Securities |
Yuanta Futures and Horizon Securities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yuanta Futures and Horizon Securities
The main advantage of trading using opposite Yuanta Futures and Horizon Securities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yuanta Futures position performs unexpectedly, Horizon Securities 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 Horizon Securities will offset losses from the drop in Horizon Securities' long position.| Yuanta Futures vs. Asustek Computer | Yuanta Futures vs. New Asia Construction | Yuanta Futures vs. Elitegroup Computer Systems | Yuanta Futures vs. Strong H Machinery |
| Horizon Securities vs. Sinopac Financial Holdings | Horizon Securities vs. China Development Financial | Horizon Securities vs. Symtek Automation Asia | Horizon Securities vs. CTCI Corp |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |