Correlation Between Yuanta Financial and Ibase Gaming
Can any of the company-specific risk be diversified away by investing in both Yuanta Financial and Ibase Gaming 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 Ibase Gaming 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 Ibase Gaming, you can compare the effects of market volatilities on Yuanta Financial and Ibase Gaming 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 Ibase Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yuanta Financial and Ibase Gaming.
Diversification Opportunities for Yuanta Financial and Ibase Gaming
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Yuanta and Ibase is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Yuanta Financial Holdings and Ibase Gaming in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ibase Gaming 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 Ibase Gaming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ibase Gaming has no effect on the direction of Yuanta Financial i.e., Yuanta Financial and Ibase Gaming go up and down completely randomly.
Pair Corralation between Yuanta Financial and Ibase Gaming
Assuming the 90 days trading horizon Yuanta Financial Holdings is expected to generate 0.52 times more return on investment than Ibase Gaming. However, Yuanta Financial Holdings is 1.91 times less risky than Ibase Gaming. It trades about 0.2 of its potential returns per unit of risk. Ibase Gaming is currently generating about -0.08 per unit of risk. If you would invest 3,025 in Yuanta Financial Holdings on September 13, 2024 and sell it today you would earn a total of 445.00 from holding Yuanta Financial Holdings or generate 14.71% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Yuanta Financial Holdings vs. Ibase Gaming
Performance |
Timeline |
Yuanta Financial Holdings |
Ibase Gaming |
Yuanta Financial and Ibase Gaming Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Yuanta Financial and Ibase Gaming
The main advantage of trading using opposite Yuanta Financial and Ibase Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yuanta Financial position performs unexpectedly, Ibase Gaming 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 Ibase Gaming will offset losses from the drop in Ibase Gaming's long position.Yuanta Financial vs. Central Reinsurance Corp | Yuanta Financial vs. Huaku Development Co | Yuanta Financial vs. Fubon Financial Holding | Yuanta Financial vs. Chailease Holding Co |
Ibase Gaming vs. WIN Semiconductors | Ibase Gaming vs. GlobalWafers Co | Ibase Gaming vs. Novatek Microelectronics Corp | Ibase Gaming vs. Ruentex Development Co |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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