Correlation Between Yieh United and Yuanta Futures
Can any of the company-specific risk be diversified away by investing in both Yieh United 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 Yieh United and Yuanta Futures 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 Yuanta Futures Co, you can compare the effects of market volatilities on Yieh United 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 Yieh United with a short position of Yuanta Futures. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yieh United and Yuanta Futures.
Diversification Opportunities for Yieh United and Yuanta Futures
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Yieh and Yuanta is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Yieh United Steel and Yuanta Futures Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yuanta Futures 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 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 Yieh United i.e., Yieh United and Yuanta Futures go up and down completely randomly.
Pair Corralation between Yieh United and Yuanta Futures
Assuming the 90 days trading horizon Yieh United Steel is expected to under-perform the Yuanta Futures. In addition to that, Yieh United is 1.6 times more volatile than Yuanta Futures Co. It trades about -0.02 of its total potential returns per unit of risk. Yuanta Futures Co is currently generating about 0.06 per unit of volatility. If you would invest 8,910 in Yuanta Futures Co on September 13, 2024 and sell it today you would earn a total of 70.00 from holding Yuanta Futures Co or generate 0.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yieh United Steel vs. Yuanta Futures Co
Performance |
| Timeline |
| Yieh United Steel |
| Yuanta Futures |
Yieh United and Yuanta Futures Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yieh United and Yuanta Futures
The main advantage of trading using opposite Yieh United and Yuanta Futures positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yieh United 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.| Yieh United vs. Tainan Spinning Co | Yieh United vs. Lealea Enterprise Co | Yieh United vs. China Petrochemical Development | Yieh United vs. Ruentex Development Co |
| Yuanta Futures vs. V Tac Technology Co | Yuanta Futures vs. Lian Hwa Foods | Yuanta Futures vs. Oceanic Beverages Co | Yuanta Futures vs. Hi Lai Foods Co |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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