Correlation Between Camellia Metal and Yuanta Financial
Can any of the company-specific risk be diversified away by investing in both Camellia Metal and Yuanta Financial 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 Camellia Metal and Yuanta Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Camellia Metal Co and Yuanta Financial Holdings, you can compare the effects of market volatilities on Camellia Metal and Yuanta Financial 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 Camellia Metal with a short position of Yuanta Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Camellia Metal and Yuanta Financial.
Diversification Opportunities for Camellia Metal and Yuanta Financial
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Camellia and Yuanta is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Camellia Metal Co and Yuanta Financial Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yuanta Financial Holdings and Camellia Metal 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 Camellia Metal Co are associated (or correlated) with Yuanta Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yuanta Financial Holdings has no effect on the direction of Camellia Metal i.e., Camellia Metal and Yuanta Financial go up and down completely randomly.
Pair Corralation between Camellia Metal and Yuanta Financial
Assuming the 90 days trading horizon Camellia Metal Co is expected to under-perform the Yuanta Financial. In addition to that, Camellia Metal is 1.38 times more volatile than Yuanta Financial Holdings. It trades about -0.03 of its total potential returns per unit of risk. Yuanta Financial Holdings is currently generating about 0.07 per unit of volatility. If you would invest 3,270 in Yuanta Financial Holdings on October 20, 2024 and sell it today you would earn a total of 180.00 from holding Yuanta Financial Holdings or generate 5.5% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Camellia Metal Co vs. Yuanta Financial Holdings
Performance |
Timeline |
Camellia Metal |
Yuanta Financial Holdings |
Camellia Metal and Yuanta Financial Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Camellia Metal and Yuanta Financial
The main advantage of trading using opposite Camellia Metal and Yuanta Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Camellia Metal position performs unexpectedly, Yuanta Financial 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 Financial will offset losses from the drop in Yuanta Financial's long position.Camellia Metal vs. Tung Thih Electronic | Camellia Metal vs. C Media Electronics | Camellia Metal vs. WT Microelectronics Co | Camellia Metal vs. Excellence Optoelectronic |
Yuanta Financial vs. CTBC Financial Holding | Yuanta Financial vs. First Financial Holding | Yuanta Financial vs. Mega Financial Holding | Yuanta Financial vs. ESUN Financial Holding |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |