Correlation Between V Tac and Taishin Financial

Can any of the company-specific risk be diversified away by investing in both V Tac and Taishin 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 V Tac and Taishin Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between V Tac Technology Co and Taishin Financial Holding, you can compare the effects of market volatilities on V Tac and Taishin 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 V Tac with a short position of Taishin Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of V Tac and Taishin Financial.

Diversification Opportunities for V Tac and Taishin Financial

0.04

Correlation Coefficient

V Tac  Taishin Financial

Significant diversification

The 3 months correlation between 6229 and Taishin is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding V Tac Technology Co and Taishin Financial Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Taishin Financial Holding and V Tac 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 V Tac Technology Co are associated (or correlated) with Taishin Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Taishin Financial Holding has no effect on the direction of V Tac i.e., V Tac and Taishin Financial go up and down completely randomly.

Pair Corralation between V Tac and Taishin Financial

Assuming the 90 days trading horizon V Tac Technology Co is expected to generate 6.61 times more return on investment than Taishin Financial. However, V Tac is 6.61 times more volatile than Taishin Financial Holding. It trades about 0.02 of its potential returns per unit of risk. Taishin Financial Holding is currently generating about 0.12 per unit of risk. If you would invest  3,120  in V Tac Technology Co on September 22, 2024 and sell it today you would earn a total of  15.00  from holding V Tac Technology Co or generate 0.48% return on investment over 90 days.

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

V Tac Technology Co  vs.  Taishin Financial Holding

V Tac Technology

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days V Tac Technology Co has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest abnormal performance, the Stock's basic indicators remain stable and the latest fuss on Wall Street may also be a sign of long-term gains for the venture sophisticated investors.

Taishin Financial Holding

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Taishin Financial Holding are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Taishin Financial is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with V Tac and Taishin Financial

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

The idea behind V Tac Technology Co and Taishin Financial Holding 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.