Correlation Between YuantaP Shares and Super Dragon
Can any of the company-specific risk be diversified away by investing in both YuantaP Shares and Super Dragon 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 Super Dragon 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 Super Dragon Technology, you can compare the effects of market volatilities on YuantaP Shares and Super Dragon 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 Super Dragon. Check out your portfolio center. Please also check ongoing floating volatility patterns of YuantaP Shares and Super Dragon.
Diversification Opportunities for YuantaP Shares and Super Dragon
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between YuantaP and Super is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding YuantaP shares Taiwan Top and Super Dragon Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Super Dragon Technology 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 Super Dragon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Super Dragon Technology has no effect on the direction of YuantaP Shares i.e., YuantaP Shares and Super Dragon go up and down completely randomly.
Pair Corralation between YuantaP Shares and Super Dragon
Assuming the 90 days trading horizon YuantaP shares Taiwan Top is expected to under-perform the Super Dragon. But the etf apears to be less risky and, when comparing its historical volatility, YuantaP shares Taiwan Top is 1.85 times less risky than Super Dragon. The etf trades about -0.05 of its potential returns per unit of risk. The Super Dragon Technology is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 2,990 in Super Dragon Technology on December 5, 2024 and sell it today you would earn a total of 60.00 from holding Super Dragon Technology or generate 2.01% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
YuantaP shares Taiwan Top vs. Super Dragon Technology
Performance |
Timeline |
YuantaP shares Taiwan |
Super Dragon Technology |
YuantaP Shares and Super Dragon Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with YuantaP Shares and Super Dragon
The main advantage of trading using opposite YuantaP Shares and Super Dragon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YuantaP Shares position performs unexpectedly, Super Dragon 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 Super Dragon will offset losses from the drop in Super Dragon's long position.YuantaP Shares vs. YuantaP shares MSCI Taiwan | YuantaP Shares vs. YuantaP shares Taiwan GreTai | YuantaP Shares vs. YuantaP shares SSE50 | YuantaP Shares vs. YuantaP shares Taiwan Mid Cap |
Super Dragon vs. Ton Yi Industrial | Super Dragon vs. Shinih Enterprise Co | Super Dragon vs. Kingcan Holdings | Super Dragon vs. Zinwell |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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