Correlation Between Yuanta Securities and Yuanta STOXX
Can any of the company-specific risk be diversified away by investing in both Yuanta Securities and Yuanta STOXX 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 Securities and Yuanta STOXX into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Yuanta Securities Investment and Yuanta STOXX Global, you can compare the effects of market volatilities on Yuanta Securities and Yuanta STOXX 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 Securities with a short position of Yuanta STOXX. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yuanta Securities and Yuanta STOXX.
Diversification Opportunities for Yuanta Securities and Yuanta STOXX
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Yuanta and Yuanta is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Yuanta Securities Investment and Yuanta STOXX Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yuanta STOXX Global and Yuanta 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 Yuanta Securities Investment are associated (or correlated) with Yuanta STOXX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yuanta STOXX Global has no effect on the direction of Yuanta Securities i.e., Yuanta Securities and Yuanta STOXX go up and down completely randomly.
Pair Corralation between Yuanta Securities and Yuanta STOXX
Assuming the 90 days trading horizon Yuanta Securities Investment is expected to under-perform the Yuanta STOXX. In addition to that, Yuanta Securities is 1.63 times more volatile than Yuanta STOXX Global. It trades about -0.04 of its total potential returns per unit of risk. Yuanta STOXX Global is currently generating about 0.3 per unit of volatility. If you would invest 5,850 in Yuanta STOXX Global on September 12, 2024 and sell it today you would earn a total of 1,370 from holding Yuanta STOXX Global or generate 23.42% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Yuanta Securities Investment vs. Yuanta STOXX Global
Performance |
Timeline |
Yuanta Securities |
Yuanta STOXX Global |
Yuanta Securities and Yuanta STOXX Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Yuanta Securities and Yuanta STOXX
The main advantage of trading using opposite Yuanta Securities and Yuanta STOXX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yuanta Securities position performs unexpectedly, Yuanta STOXX 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 STOXX will offset losses from the drop in Yuanta STOXX's long position.Yuanta Securities vs. Yuanta Daily SP | Yuanta Securities vs. Yuanta SP GSCI | Yuanta Securities vs. Yuanta Global NexGen | Yuanta Securities vs. Yuanta SP GSCI |
Yuanta STOXX vs. YuantaP shares Taiwan Top | Yuanta STOXX vs. Yuanta Daily Taiwan | Yuanta STOXX vs. Cathay Taiwan 5G | Yuanta STOXX vs. Yuanta Daily CSI |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |