Correlation Between Fubon MSCI and Kura Sushi
Can any of the company-specific risk be diversified away by investing in both Fubon MSCI and Kura Sushi 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 Kura Sushi 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 Kura Sushi Asia, you can compare the effects of market volatilities on Fubon MSCI and Kura Sushi 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 Kura Sushi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fubon MSCI and Kura Sushi.
Diversification Opportunities for Fubon MSCI and Kura Sushi
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Fubon and Kura is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Fubon MSCI Taiwan and Kura Sushi Asia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kura Sushi Asia 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 Kura Sushi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kura Sushi Asia has no effect on the direction of Fubon MSCI i.e., Fubon MSCI and Kura Sushi go up and down completely randomly.
Pair Corralation between Fubon MSCI and Kura Sushi
Assuming the 90 days trading horizon Fubon MSCI Taiwan is expected to generate 0.73 times more return on investment than Kura Sushi. However, Fubon MSCI Taiwan is 1.37 times less risky than Kura Sushi. It trades about 0.06 of its potential returns per unit of risk. Kura Sushi Asia is currently generating about -0.07 per unit of risk. If you would invest 8,515 in Fubon MSCI Taiwan on January 17, 2025 and sell it today you would earn a total of 3,575 from holding Fubon MSCI Taiwan or generate 41.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Fubon MSCI Taiwan vs. Kura Sushi Asia
Performance |
| Timeline |
| Fubon MSCI Taiwan |
| Kura Sushi Asia |
Fubon MSCI and Kura Sushi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fubon MSCI and Kura Sushi
The main advantage of trading using opposite Fubon MSCI and Kura Sushi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fubon MSCI position performs unexpectedly, Kura Sushi 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 Kura Sushi will offset losses from the drop in Kura Sushi'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 |
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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 Transaction History module to view history of all your transactions and understand their impact on performance.
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