Correlation Between Fubon MSCI and YeaShin International
Can any of the company-specific risk be diversified away by investing in both Fubon MSCI and YeaShin International 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 YeaShin International 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 YeaShin International Development, you can compare the effects of market volatilities on Fubon MSCI and YeaShin International 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 YeaShin International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fubon MSCI and YeaShin International.
Diversification Opportunities for Fubon MSCI and YeaShin International
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Fubon and YeaShin is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Fubon MSCI Taiwan and YeaShin International Developm in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YeaShin International 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 YeaShin International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of YeaShin International has no effect on the direction of Fubon MSCI i.e., Fubon MSCI and YeaShin International go up and down completely randomly.
Pair Corralation between Fubon MSCI and YeaShin International
Assuming the 90 days trading horizon Fubon MSCI is expected to generate 10.64 times less return on investment than YeaShin International. But when comparing it to its historical volatility, Fubon MSCI Taiwan is 12.7 times less risky than YeaShin International. It trades about 0.06 of its potential returns per unit of risk. YeaShin International Development is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 3,341 in YeaShin International Development on August 30, 2024 and sell it today you would lose (281.00) from holding YeaShin International Development or give up 8.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fubon MSCI Taiwan vs. YeaShin International Developm
Performance |
| Timeline |
| Fubon MSCI Taiwan |
| YeaShin International |
Fubon MSCI and YeaShin International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fubon MSCI and YeaShin International
The main advantage of trading using opposite Fubon MSCI and YeaShin International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fubon MSCI position performs unexpectedly, YeaShin International 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 YeaShin International will offset losses from the drop in YeaShin International'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 |
| YeaShin International vs. Sino Horizon Holdings | YeaShin International vs. Run Long Construction | YeaShin International vs. Chong Hong Construction | YeaShin International vs. Sinyi Realty |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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