Correlation Between Fubon MSCI and Sinher Technology
Can any of the company-specific risk be diversified away by investing in both Fubon MSCI and Sinher Technology 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 Sinher Technology 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 Sinher Technology, you can compare the effects of market volatilities on Fubon MSCI and Sinher Technology 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 Sinher Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fubon MSCI and Sinher Technology.
Diversification Opportunities for Fubon MSCI and Sinher Technology
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Fubon and Sinher is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Fubon MSCI Taiwan and Sinher Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinher Technology 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 Sinher Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sinher Technology has no effect on the direction of Fubon MSCI i.e., Fubon MSCI and Sinher Technology go up and down completely randomly.
Pair Corralation between Fubon MSCI and Sinher Technology
Assuming the 90 days trading horizon Fubon MSCI is expected to generate 2.52 times less return on investment than Sinher Technology. In addition to that, Fubon MSCI is 1.65 times more volatile than Sinher Technology. It trades about 0.08 of its total potential returns per unit of risk. Sinher Technology is currently generating about 0.32 per unit of volatility. If you would invest 3,180 in Sinher Technology on November 28, 2024 and sell it today you would earn a total of 105.00 from holding Sinher Technology or generate 3.3% 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. Sinher Technology
Performance |
| Timeline |
| Fubon MSCI Taiwan |
| Sinher Technology |
Fubon MSCI and Sinher Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fubon MSCI and Sinher Technology
The main advantage of trading using opposite Fubon MSCI and Sinher Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fubon MSCI position performs unexpectedly, Sinher Technology 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 Sinher Technology will offset losses from the drop in Sinher Technology'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 |
| Sinher Technology vs. Hsing Ta Cement | Sinher Technology vs. Capital Futures Corp | Sinher Technology vs. First Insurance Co | Sinher Technology vs. Yem Chio 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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