Correlation Between YuantaP Shares and Juic International

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

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

Diversification Opportunities for YuantaP Shares and Juic International

-0.9

Correlation Coefficient

YuantaP Shares  Juic International

Pay attention - limited upside

The 3 months correlation between YuantaP and Juic is -0.9. Overlapping area represents the amount of risk that can be diversified away by holding YuantaP shares Taiwan Top and Juic International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Juic International and YuantaP Shares 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 YuantaP shares Taiwan Top are associated (or correlated) with Juic International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Juic International has no effect on the direction of YuantaP Shares i.e., YuantaP Shares and Juic International go up and down completely randomly.

Pair Corralation between YuantaP Shares and Juic International

Assuming the 90 days trading horizon YuantaP shares Taiwan Top is expected to generate 1.21 times more return on investment than Juic International. However, YuantaP Shares is 1.21 times more volatile than Juic International. It trades about -0.04 of its potential returns per unit of risk. Juic International is currently generating about -0.08 per unit of risk. If you would invest  15,945  in YuantaP shares Taiwan Top on February 4, 2024 and sell it today you would lose (250.00) from holding YuantaP shares Taiwan Top or give up 1.57% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	95.0%
Values	Daily Returns

YuantaP shares Taiwan Top  vs.  Juic International

YuantaP shares Taiwan

Risk-Adjusted Performance

14 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in YuantaP shares Taiwan Top are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, YuantaP Shares showed solid returns over the last few months and may actually be approaching a breakup point.

Juic International

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Juic International has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of abnormal performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in June 2024. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Pair Trading with YuantaP Shares and Juic International

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

The idea behind YuantaP shares Taiwan Top and Juic International 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.