Correlation Between Fubon MSCI and Synnex Technology
Can any of the company-specific risk be diversified away by investing in both Fubon MSCI and Synnex Technology 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 Fubon MSCI and Synnex Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fubon MSCI Taiwan and Synnex Technology International, you can compare the effects of market volatilities on Fubon MSCI and Synnex Technology 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 Synnex Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fubon MSCI and Synnex Technology.
Diversification Opportunities for Fubon MSCI and Synnex Technology
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Fubon and Synnex is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Fubon MSCI Taiwan and Synnex Technology Internationa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Synnex Technology 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 Synnex Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Synnex Technology has no effect on the direction of Fubon MSCI i.e., Fubon MSCI and Synnex Technology go up and down completely randomly.
Pair Corralation between Fubon MSCI and Synnex Technology
Assuming the 90 days trading horizon Fubon MSCI Taiwan is expected to generate 1.27 times more return on investment than Synnex Technology. However, Fubon MSCI is 1.27 times more volatile than Synnex Technology International. It trades about 0.1 of its potential returns per unit of risk. Synnex Technology International is currently generating about -0.05 per unit of risk. If you would invest 14,520 in Fubon MSCI Taiwan on October 26, 2024 and sell it today you would earn a total of 370.00 from holding Fubon MSCI Taiwan or generate 2.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fubon MSCI Taiwan vs. Synnex Technology Internationa
Performance |
| Timeline |
| Fubon MSCI Taiwan |
| Synnex Technology |
Fubon MSCI and Synnex Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fubon MSCI and Synnex Technology
The main advantage of trading using opposite Fubon MSCI and Synnex Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fubon MSCI position performs unexpectedly, Synnex Technology 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 Synnex Technology will offset losses from the drop in Synnex Technology's long position.| Fubon MSCI vs. Fubon Hang Seng | Fubon MSCI vs. Fubon SP Preferred | Fubon MSCI vs. Fubon NASDAQ 100 1X | Fubon MSCI vs. Fubon TWSE Corporate |
| Synnex Technology vs. Compal Electronics | Synnex Technology vs. Quanta Computer | Synnex Technology vs. Inventec Corp | Synnex Technology vs. Lite On Technology Corp |
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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