Correlation Between YuantaP Shares and Chlitina Holding

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

By analyzing existing cross correlation between YuantaP shares Taiwan Mid Cap and Chlitina Holding, you can compare the effects of market volatilities on YuantaP Shares and Chlitina Holding 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 Chlitina Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of YuantaP Shares and Chlitina Holding.

Diversification Opportunities for YuantaP Shares and Chlitina Holding

0.89

Correlation Coefficient

YuantaP Shares  Chlitina Holding

Very poor diversification

The 3 months correlation between YuantaP and Chlitina is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding YuantaP shares Taiwan Mid Cap and Chlitina Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chlitina Holding 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 Mid Cap are associated (or correlated) with Chlitina Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chlitina Holding has no effect on the direction of YuantaP Shares i.e., YuantaP Shares and Chlitina Holding go up and down completely randomly.

Pair Corralation between YuantaP Shares and Chlitina Holding

Assuming the 90 days trading horizon YuantaP shares Taiwan Mid Cap is expected to under-perform the Chlitina Holding. But the etf apears to be less risky and, when comparing its historical volatility, YuantaP shares Taiwan Mid Cap is 2.29 times less risky than Chlitina Holding. The etf trades about -0.1 of its potential returns per unit of risk. The Chlitina Holding is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest  10,750  in Chlitina Holding on October 22, 2024 and sell it today you would lose (100.00) from holding Chlitina Holding or give up 0.93% of portfolio value over 90 days.

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

YuantaP shares Taiwan Mid Cap  vs.  Chlitina Holding

YuantaP shares Taiwan

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days YuantaP shares Taiwan Mid Cap has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest abnormal performance, the Etf's basic indicators remain stable and the latest fuss on Wall Street may also be a sign of long-term gains for the fund sophisticated investors.

Chlitina Holding

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Chlitina Holding has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of abnormal performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in February 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Pair Trading with YuantaP Shares and Chlitina Holding

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

The idea behind YuantaP shares Taiwan Mid Cap and Chlitina Holding 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.