Correlation Between Yuanta Financial and Mega Financial
Can any of the company-specific risk be diversified away by investing in both Yuanta Financial and Mega 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 Yuanta Financial and Mega Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Yuanta Financial Holdings and Mega Financial Holding, you can compare the effects of market volatilities on Yuanta Financial and Mega 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 Yuanta Financial with a short position of Mega Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yuanta Financial and Mega Financial.
Diversification Opportunities for Yuanta Financial and Mega Financial
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Yuanta and Mega is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Yuanta Financial Holdings and Mega Financial Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mega Financial Holding and Yuanta Financial 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 Financial Holdings are associated (or correlated) with Mega Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mega Financial Holding has no effect on the direction of Yuanta Financial i.e., Yuanta Financial and Mega Financial go up and down completely randomly.
Pair Corralation between Yuanta Financial and Mega Financial
Assuming the 90 days trading horizon Yuanta Financial Holdings is expected to generate 1.77 times more return on investment than Mega Financial. However, Yuanta Financial is 1.77 times more volatile than Mega Financial Holding. It trades about 0.24 of its potential returns per unit of risk. Mega Financial Holding is currently generating about 0.12 per unit of risk. If you would invest 3,500 in Yuanta Financial Holdings on December 2, 2024 and sell it today you would earn a total of 165.00 from holding Yuanta Financial Holdings or generate 4.71% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Yuanta Financial Holdings vs. Mega Financial Holding
Performance |
Timeline |
Yuanta Financial Holdings |
Mega Financial Holding |
Yuanta Financial and Mega Financial Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Yuanta Financial and Mega Financial
The main advantage of trading using opposite Yuanta Financial and Mega Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yuanta Financial position performs unexpectedly, Mega 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 Mega Financial will offset losses from the drop in Mega Financial's long position.Yuanta Financial vs. CTBC Financial Holding | Yuanta Financial vs. Fubon Financial Holding | Yuanta Financial vs. Cathay Financial Holding | Yuanta Financial vs. Mega Financial Holding |
Mega Financial vs. CTBC Financial Holding | Mega Financial vs. Fubon Financial Holding | Mega Financial vs. First Financial Holding | Mega Financial vs. Cathay 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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
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 | |
CEOs Directory Screen CEOs from public companies around the world |