Correlation Between YuantaP Shares and Globe Union

Can any of the company-specific risk be diversified away by investing in both YuantaP Shares and Globe Union 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 Globe Union 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 Globe Union Industrial, you can compare the effects of market volatilities on YuantaP Shares and Globe Union 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 Globe Union. Check out your portfolio center. Please also check ongoing floating volatility patterns of YuantaP Shares and Globe Union.

Diversification Opportunities for YuantaP Shares and Globe Union

-0.4

Correlation Coefficient

YuantaP Shares  Globe Union

Very good diversification

The 3 months correlation between YuantaP and Globe is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding YuantaP shares Taiwan Top and Globe Union Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Globe Union Industrial 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 Globe Union. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Globe Union Industrial has no effect on the direction of YuantaP Shares i.e., YuantaP Shares and Globe Union go up and down completely randomly.

Pair Corralation between YuantaP Shares and Globe Union

Assuming the 90 days trading horizon YuantaP shares Taiwan Top is expected to under-perform the Globe Union. But the etf apears to be less risky and, when comparing its historical volatility, YuantaP shares Taiwan Top is 1.36 times less risky than Globe Union. The etf trades about -0.15 of its potential returns per unit of risk. The Globe Union Industrial is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest  1,385  in Globe Union Industrial on December 5, 2024 and sell it today you would earn a total of  60.00  from holding Globe Union Industrial or generate 4.33% return on investment over 90 days.

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

YuantaP shares Taiwan Top  vs.  Globe Union Industrial

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.

Globe Union Industrial

Risk-Adjusted Performance

Very Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Globe Union Industrial are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of fairly stable basic indicators, Globe Union 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 Globe Union

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

The idea behind YuantaP shares Taiwan Top and Globe Union Industrial 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 Transaction History module to view history of all your transactions and understand their impact on performance.