Correlation Between Fubon MSCI and Auden Techno
Can any of the company-specific risk be diversified away by investing in both Fubon MSCI and Auden Techno 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 Auden Techno 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 Auden Techno, you can compare the effects of market volatilities on Fubon MSCI and Auden Techno 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 Auden Techno. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fubon MSCI and Auden Techno.
Diversification Opportunities for Fubon MSCI and Auden Techno
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Fubon and Auden is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Fubon MSCI Taiwan and Auden Techno in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Auden Techno 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 Auden Techno. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Auden Techno has no effect on the direction of Fubon MSCI i.e., Fubon MSCI and Auden Techno go up and down completely randomly.
Pair Corralation between Fubon MSCI and Auden Techno
Assuming the 90 days trading horizon Fubon MSCI Taiwan is expected to generate 0.74 times more return on investment than Auden Techno. However, Fubon MSCI Taiwan is 1.36 times less risky than Auden Techno. It trades about 0.05 of its potential returns per unit of risk. Auden Techno is currently generating about -0.05 per unit of risk. If you would invest 13,250 in Fubon MSCI Taiwan on September 14, 2024 and sell it today you would earn a total of 1,115 from holding Fubon MSCI Taiwan or generate 8.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fubon MSCI Taiwan vs. Auden Techno
Performance |
| Timeline |
| Fubon MSCI Taiwan |
| Auden Techno |
Fubon MSCI and Auden Techno Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fubon MSCI and Auden Techno
The main advantage of trading using opposite Fubon MSCI and Auden Techno positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fubon MSCI position performs unexpectedly, Auden Techno 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 Auden Techno will offset losses from the drop in Auden Techno'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 |
| Auden Techno vs. CyberTAN Technology | Auden Techno vs. Merry Electronics Co | Auden Techno vs. Unizyx Holding Corp | Auden Techno vs. Microelectronics Technology |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |