Correlation Between Fubon MSCI and Feature Integration
Can any of the company-specific risk be diversified away by investing in both Fubon MSCI and Feature Integration 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 Feature Integration 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 Feature Integration Technology, you can compare the effects of market volatilities on Fubon MSCI and Feature Integration 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 Feature Integration. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fubon MSCI and Feature Integration.
Diversification Opportunities for Fubon MSCI and Feature Integration
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Fubon and Feature is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Fubon MSCI Taiwan and Feature Integration Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Feature Integration 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 Feature Integration. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Feature Integration has no effect on the direction of Fubon MSCI i.e., Fubon MSCI and Feature Integration go up and down completely randomly.
Pair Corralation between Fubon MSCI and Feature Integration
Assuming the 90 days trading horizon Fubon MSCI is expected to generate 1.04 times less return on investment than Feature Integration. But when comparing it to its historical volatility, Fubon MSCI Taiwan is 1.87 times less risky than Feature Integration. It trades about 0.1 of its potential returns per unit of risk. Feature Integration Technology is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 4,468 in Feature Integration Technology on September 3, 2024 and sell it today you would earn a total of 2,532 from holding Feature Integration Technology or generate 56.67% 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. Feature Integration Technology
Performance |
| Timeline |
| Fubon MSCI Taiwan |
| Feature Integration |
Fubon MSCI and Feature Integration Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fubon MSCI and Feature Integration
The main advantage of trading using opposite Fubon MSCI and Feature Integration positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fubon MSCI position performs unexpectedly, Feature Integration 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 Feature Integration will offset losses from the drop in Feature Integration's long position.| Fubon MSCI vs. Cathay Taiwan 5G | Fubon MSCI vs. Ruentex Development Co | Fubon MSCI vs. Symtek Automation Asia | Fubon MSCI vs. CTCI 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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