Correlation Between Yuanta Securities and Yuanta Daily

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

Diversification Opportunities for Yuanta Securities and Yuanta Daily

-0.35

Correlation Coefficient

Yuanta Securities  Yuanta Daily

Very good diversification

The 3 months correlation between Yuanta and Yuanta is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Yuanta Securities Investment and Yuanta Daily CSI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yuanta Daily CSI 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 Yuanta Daily. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yuanta Daily CSI has no effect on the direction of Yuanta Securities i.e., Yuanta Securities and Yuanta Daily go up and down completely randomly.

Pair Corralation between Yuanta Securities and Yuanta Daily

Assuming the 90 days trading horizon Yuanta Securities Investment is expected to under-perform the Yuanta Daily. But the etf apears to be less risky and, when comparing its historical volatility, Yuanta Securities Investment is 2.74 times less risky than Yuanta Daily. The etf trades about -0.48 of its potential returns per unit of risk. The Yuanta Daily CSI is currently generating about -0.08 of returns per unit of risk over similar time horizon. If you would invest  1,627  in Yuanta Daily CSI on October 8, 2024 and sell it today you would lose (65.00) from holding Yuanta Daily CSI or give up 4.0% of portfolio value over 90 days.

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

Yuanta Securities Investment  vs.  Yuanta Daily CSI

Yuanta Securities

Risk-Adjusted Performance

0 of 100

Very Weak

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.

Yuanta Daily CSI

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Yuanta Daily CSI has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Etf's basic indicators remain somewhat strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for the ETF investors.

Pair Trading with Yuanta Securities and Yuanta Daily

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

The idea behind Yuanta Securities Investment and Yuanta Daily CSI 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.