Correlation Between Fubon MSCI and Silicon Power
Can any of the company-specific risk be diversified away by investing in both Fubon MSCI and Silicon Power 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 Silicon Power 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 Silicon Power Computer, you can compare the effects of market volatilities on Fubon MSCI and Silicon Power 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 Silicon Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fubon MSCI and Silicon Power.
Diversification Opportunities for Fubon MSCI and Silicon Power
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Fubon and Silicon is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Fubon MSCI Taiwan and Silicon Power Computer in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Silicon Power Computer 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 Silicon Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Silicon Power Computer has no effect on the direction of Fubon MSCI i.e., Fubon MSCI and Silicon Power go up and down completely randomly.
Pair Corralation between Fubon MSCI and Silicon Power
Assuming the 90 days trading horizon Fubon MSCI Taiwan is expected to under-perform the Silicon Power. But the etf apears to be less risky and, when comparing its historical volatility, Fubon MSCI Taiwan is 1.56 times less risky than Silicon Power. The etf trades about -0.06 of its potential returns per unit of risk. The Silicon Power Computer is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 3,135 in Silicon Power Computer on August 27, 2024 and sell it today you would earn a total of 225.00 from holding Silicon Power Computer or generate 7.18% 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. Silicon Power Computer
Performance |
| Timeline |
| Fubon MSCI Taiwan |
| Silicon Power Computer |
Fubon MSCI and Silicon Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fubon MSCI and Silicon Power
The main advantage of trading using opposite Fubon MSCI and Silicon Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fubon MSCI position performs unexpectedly, Silicon Power 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 Silicon Power will offset losses from the drop in Silicon Power'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 |
| Silicon Power vs. Quanta Computer | Silicon Power vs. Wiwynn Corp | Silicon Power vs. Getac Technology Corp | Silicon Power vs. IEI Integration 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |