Correlation Between Fubon MSCI and Capital ICE
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By analyzing existing cross correlation between Fubon MSCI Taiwan and Capital ICE International15, you can compare the effects of market volatilities on Fubon MSCI and Capital ICE 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 Fubon MSCI with a short position of Capital ICE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fubon MSCI and Capital ICE.
Diversification Opportunities for Fubon MSCI and Capital ICE
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Fubon and Capital is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Fubon MSCI Taiwan and Capital ICE International15 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Capital ICE Internat and Fubon MSCI 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 Fubon MSCI Taiwan are associated (or correlated) with Capital ICE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Capital ICE Internat has no effect on the direction of Fubon MSCI i.e., Fubon MSCI and Capital ICE go up and down completely randomly.
Pair Corralation between Fubon MSCI and Capital ICE
Assuming the 90 days trading horizon Fubon MSCI is expected to generate 4.23 times less return on investment than Capital ICE. In addition to that, Fubon MSCI is 2.97 times more volatile than Capital ICE International15. It trades about 0.03 of its total potential returns per unit of risk. Capital ICE International15 is currently generating about 0.33 per unit of volatility. If you would invest 3,224 in Capital ICE International15 on September 5, 2024 and sell it today you would earn a total of 98.00 from holding Capital ICE International15 or generate 3.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fubon MSCI Taiwan vs. Capital ICE International15
Performance |
| Timeline |
| Fubon MSCI Taiwan |
| Capital ICE Internat |
Fubon MSCI and Capital ICE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fubon MSCI and Capital ICE
The main advantage of trading using opposite Fubon MSCI and Capital ICE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fubon MSCI position performs unexpectedly, Capital ICE 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 Capital ICE will offset losses from the drop in Capital ICE's long position.| Fubon MSCI vs. Ruentex Development Co | Fubon MSCI vs. Symtek Automation Asia | Fubon MSCI vs. CTCI Corp | Fubon MSCI vs. Information Technology Total |
| Capital ICE vs. Ruentex Development Co | Capital ICE vs. Symtek Automation Asia | Capital ICE vs. CTCI Corp | Capital ICE vs. Information Technology Total |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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