Correlation Between YuantaP Shares and Tainergy Tech

Can any of the company-specific risk be diversified away by investing in both YuantaP Shares and Tainergy Tech 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 YuantaP Shares and Tainergy Tech into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between YuantaP shares Taiwan Top and Tainergy Tech Co, you can compare the effects of market volatilities on YuantaP Shares and Tainergy Tech 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 YuantaP Shares with a short position of Tainergy Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of YuantaP Shares and Tainergy Tech.

Diversification Opportunities for YuantaP Shares and Tainergy Tech

-0.3

Correlation Coefficient

YuantaP Shares  Tainergy Tech

Very good diversification

The 3 months correlation between YuantaP and Tainergy is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding YuantaP shares Taiwan Top and Tainergy Tech Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tainergy Tech and YuantaP Shares 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 YuantaP shares Taiwan Top are associated (or correlated) with Tainergy Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tainergy Tech has no effect on the direction of YuantaP Shares i.e., YuantaP Shares and Tainergy Tech go up and down completely randomly.

Pair Corralation between YuantaP Shares and Tainergy Tech

Assuming the 90 days trading horizon YuantaP shares Taiwan Top is expected to under-perform the Tainergy Tech. But the etf apears to be less risky and, when comparing its historical volatility, YuantaP shares Taiwan Top is 2.4 times less risky than Tainergy Tech. The etf trades about -0.03 of its potential returns per unit of risk. The Tainergy Tech Co is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest  1,435  in Tainergy Tech Co on December 4, 2024 and sell it today you would lose (60.00) from holding Tainergy Tech Co or give up 4.18% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

YuantaP shares Taiwan Top  vs.  Tainergy Tech Co

YuantaP shares Taiwan

Risk-Adjusted Performance

Very Weak

Over the last 90 days YuantaP shares Taiwan Top has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, YuantaP Shares is not utilizing all of its potentials. The current stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Tainergy Tech

Risk-Adjusted Performance

Very Weak

Over the last 90 days Tainergy Tech Co has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Tainergy Tech is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with YuantaP Shares and Tainergy Tech

The main advantage of trading using opposite YuantaP Shares and Tainergy Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YuantaP Shares position performs unexpectedly, Tainergy Tech 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 Tainergy Tech will offset losses from the drop in Tainergy Tech's long position.

The idea behind YuantaP shares Taiwan Top and Tainergy Tech 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.

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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.