Correlation Between Fubon MSCI and Koge Micro
Can any of the company-specific risk be diversified away by investing in both Fubon MSCI and Koge Micro 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 Koge Micro 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 Koge Micro Tech, you can compare the effects of market volatilities on Fubon MSCI and Koge Micro 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 Koge Micro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fubon MSCI and Koge Micro.
Diversification Opportunities for Fubon MSCI and Koge Micro
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Fubon and Koge is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Fubon MSCI Taiwan and Koge Micro Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Koge Micro Tech 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 Koge Micro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Koge Micro Tech has no effect on the direction of Fubon MSCI i.e., Fubon MSCI and Koge Micro go up and down completely randomly.
Pair Corralation between Fubon MSCI and Koge Micro
Assuming the 90 days trading horizon Fubon MSCI Taiwan is expected to generate 1.51 times more return on investment than Koge Micro. However, Fubon MSCI is 1.51 times more volatile than Koge Micro Tech. It trades about 0.06 of its potential returns per unit of risk. Koge Micro Tech is currently generating about -0.2 per unit of risk. If you would invest 13,450 in Fubon MSCI Taiwan on August 30, 2024 and sell it today you would earn a total of 365.00 from holding Fubon MSCI Taiwan or generate 2.71% 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. Koge Micro Tech
Performance |
| Timeline |
| Fubon MSCI Taiwan |
| Koge Micro Tech |
Fubon MSCI and Koge Micro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fubon MSCI and Koge Micro
The main advantage of trading using opposite Fubon MSCI and Koge Micro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fubon MSCI position performs unexpectedly, Koge Micro 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 Koge Micro will offset losses from the drop in Koge Micro's long position.| Fubon MSCI vs. Yuanta Daily Taiwan | Fubon MSCI vs. Symtek Automation Asia | Fubon MSCI vs. CTCI Corp | Fubon MSCI vs. Information Technology Total |
| Koge Micro vs. Chain Chon Industrial | Koge Micro vs. Fu Burg Industrial | Koge Micro vs. U Media Communications | Koge Micro vs. Elitegroup Computer Systems |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |