Correlation Between Tait Marketing and YuantaP Shares

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

By analyzing existing cross correlation between Tait Marketing Distribution and YuantaP shares Taiwan Electronics, you can compare the effects of market volatilities on Tait Marketing and YuantaP Shares 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 Tait Marketing with a short position of YuantaP Shares. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tait Marketing and YuantaP Shares.

Diversification Opportunities for Tait Marketing and YuantaP Shares

-0.86

Correlation Coefficient

Tait Marketing  YuantaP Shares

Pay attention - limited upside

The 3 months correlation between Tait and YuantaP is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding Tait Marketing Distribution and YuantaP shares Taiwan Electron in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YuantaP shares Taiwan and Tait Marketing 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 Tait Marketing Distribution are associated (or correlated) with YuantaP Shares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of YuantaP shares Taiwan has no effect on the direction of Tait Marketing i.e., Tait Marketing and YuantaP Shares go up and down completely randomly.

Pair Corralation between Tait Marketing and YuantaP Shares

Assuming the 90 days trading horizon Tait Marketing Distribution is expected to generate 0.66 times more return on investment than YuantaP Shares. However, Tait Marketing Distribution is 1.51 times less risky than YuantaP Shares. It trades about 0.18 of its potential returns per unit of risk. YuantaP shares Taiwan Electronics is currently generating about -0.11 per unit of risk. If you would invest  4,010  in Tait Marketing Distribution on December 30, 2024 and sell it today you would earn a total of  400.00  from holding Tait Marketing Distribution or generate 9.98% return on investment over 90 days.

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

Tait Marketing Distribution  vs.  YuantaP shares Taiwan Electron

Tait Marketing Distr

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Tait Marketing Distribution are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Tait Marketing may actually be approaching a critical reversion point that can send shares even higher in April 2025.

YuantaP shares Taiwan

Risk-Adjusted Performance

Very Weak

Over the last 90 days YuantaP shares Taiwan Electronics 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.

Pair Trading with Tait Marketing and YuantaP Shares

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

The idea behind Tait Marketing Distribution and YuantaP shares Taiwan Electronics 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.