Correlation Between Fubon MSCI and SS Healthcare
Can any of the company-specific risk be diversified away by investing in both Fubon MSCI and SS Healthcare 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 SS Healthcare 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 SS Healthcare Holding, you can compare the effects of market volatilities on Fubon MSCI and SS Healthcare 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 SS Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fubon MSCI and SS Healthcare.
Diversification Opportunities for Fubon MSCI and SS Healthcare
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Fubon and 4198 is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Fubon MSCI Taiwan and SS Healthcare Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SS Healthcare Holding 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 SS Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SS Healthcare Holding has no effect on the direction of Fubon MSCI i.e., Fubon MSCI and SS Healthcare go up and down completely randomly.
Pair Corralation between Fubon MSCI and SS Healthcare
Assuming the 90 days trading horizon Fubon MSCI Taiwan is expected to generate 0.4 times more return on investment than SS Healthcare. However, Fubon MSCI Taiwan is 2.49 times less risky than SS Healthcare. It trades about -0.07 of its potential returns per unit of risk. SS Healthcare Holding is currently generating about -0.1 per unit of risk. If you would invest 14,435 in Fubon MSCI Taiwan on August 26, 2024 and sell it today you would lose (260.00) from holding Fubon MSCI Taiwan or give up 1.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fubon MSCI Taiwan vs. SS Healthcare Holding
Performance |
| Timeline |
| Fubon MSCI Taiwan |
| SS Healthcare Holding |
Fubon MSCI and SS Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fubon MSCI and SS Healthcare
The main advantage of trading using opposite Fubon MSCI and SS Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fubon MSCI position performs unexpectedly, SS Healthcare 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 SS Healthcare will offset losses from the drop in SS Healthcare'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 |
| SS Healthcare vs. StShine Optical Co | SS Healthcare vs. TTY Biopharm Co | SS Healthcare vs. Apex Biotechnology Corp | SS Healthcare vs. Ruentex Development Co |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |