Correlation Between Yieh United and Taishin Financial
Can any of the company-specific risk be diversified away by investing in both Yieh United and Taishin 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 Yieh United and Taishin Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Yieh United Steel and Taishin Financial Holding, you can compare the effects of market volatilities on Yieh United and Taishin 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 Yieh United with a short position of Taishin Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yieh United and Taishin Financial.
Diversification Opportunities for Yieh United and Taishin Financial
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Yieh and Taishin is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Yieh United Steel and Taishin Financial Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Taishin Financial Holding and Yieh United 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 Yieh United Steel are associated (or correlated) with Taishin Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Taishin Financial Holding has no effect on the direction of Yieh United i.e., Yieh United and Taishin Financial go up and down completely randomly.
Pair Corralation between Yieh United and Taishin Financial
Assuming the 90 days trading horizon Yieh United Steel is expected to generate 4.62 times more return on investment than Taishin Financial. However, Yieh United is 4.62 times more volatile than Taishin Financial Holding. It trades about 0.0 of its potential returns per unit of risk. Taishin Financial Holding is currently generating about -0.04 per unit of risk. If you would invest 639.00 in Yieh United Steel on August 25, 2024 and sell it today you would earn a total of 0.00 from holding Yieh United Steel or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yieh United Steel vs. Taishin Financial Holding
Performance |
| Timeline |
| Yieh United Steel |
| Taishin Financial Holding |
Yieh United and Taishin Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yieh United and Taishin Financial
The main advantage of trading using opposite Yieh United and Taishin Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yieh United position performs unexpectedly, Taishin 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 Taishin Financial will offset losses from the drop in Taishin Financial's long position.| Yieh United vs. Cayenne Entertainment Technology | Yieh United vs. Chunghwa Telecom Co | Yieh United vs. Jia Jie Biomedical | Yieh United vs. Simple Mart Retail |
| Taishin Financial vs. Mega Financial Holding | Taishin Financial vs. Taiwan Cooperative Financial | Taishin Financial vs. ESUN Financial Holding | Taishin Financial vs. Hua Nan Financial |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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