Correlation Between U Media and Yuanta Futures
Can any of the company-specific risk be diversified away by investing in both U Media 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 U Media and Yuanta Futures into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between U Media Communications and Yuanta Futures Co, you can compare the effects of market volatilities on U Media 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 U Media with a short position of Yuanta Futures. Check out your portfolio center. Please also check ongoing floating volatility patterns of U Media and Yuanta Futures.
Diversification Opportunities for U Media and Yuanta Futures
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between 6470 and Yuanta is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding U Media Communications and Yuanta Futures Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yuanta Futures and U Media 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 U Media Communications 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 U Media i.e., U Media and Yuanta Futures go up and down completely randomly.
Pair Corralation between U Media and Yuanta Futures
Assuming the 90 days trading horizon U Media Communications is expected to generate 6.28 times more return on investment than Yuanta Futures. However, U Media is 6.28 times more volatile than Yuanta Futures Co. It trades about 0.11 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 4,975 in U Media Communications on September 12, 2024 and sell it today you would earn a total of 415.00 from holding U Media Communications or generate 8.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
U Media Communications vs. Yuanta Futures Co
Performance |
| Timeline |
| U Media Communications |
| Yuanta Futures |
U Media and Yuanta Futures Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with U Media and Yuanta Futures
The main advantage of trading using opposite U Media and Yuanta Futures positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if U Media 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.| U Media vs. Gemtek Technology Co | U Media vs. Ruentex Development Co | U Media vs. WiseChip Semiconductor | U Media vs. Novatek Microelectronics Corp |
| 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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