Correlation Between Yuanta Securities and Ruentex Development

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Can any of the company-specific risk be diversified away by investing in both Yuanta Securities and Ruentex Development 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 Ruentex Development 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 Ruentex Development Co, you can compare the effects of market volatilities on Yuanta Securities and Ruentex Development 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 Ruentex Development. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yuanta Securities and Ruentex Development.

Diversification Opportunities for Yuanta Securities and Ruentex Development

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  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Yuanta and Ruentex is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Yuanta Securities Investment and Ruentex Development Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ruentex Development 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 Ruentex Development. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ruentex Development has no effect on the direction of Yuanta Securities i.e., Yuanta Securities and Ruentex Development go up and down completely randomly.

Pair Corralation between Yuanta Securities and Ruentex Development

If you would invest  4,585  in Ruentex Development Co on September 9, 2024 and sell it today you would earn a total of  35.00  from holding Ruentex Development Co or generate 0.76% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy1.56%
ValuesDaily Returns

Yuanta Securities Investment  vs.  Ruentex Development Co

 Performance 
       Timeline  
Yuanta Securities 

Risk-Adjusted Performance

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Over the last 90 days Yuanta Securities Investment has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Yuanta Securities is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
Ruentex Development 

Risk-Adjusted Performance

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Compared to the overall equity markets, risk-adjusted returns on investments in Ruentex Development Co are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of fairly stable basic indicators, Ruentex Development is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Yuanta Securities and Ruentex Development Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Yuanta Securities and Ruentex Development

The main advantage of trading using opposite Yuanta Securities and Ruentex Development positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yuanta Securities position performs unexpectedly, Ruentex Development 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 Ruentex Development will offset losses from the drop in Ruentex Development's long position.
The idea behind Yuanta Securities Investment and Ruentex Development Co pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Bonds Directory module to find actively traded corporate debentures issued by US companies.

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