Correlation Between Fubon MSCI and Analog Integrations
Can any of the company-specific risk be diversified away by investing in both Fubon MSCI and Analog Integrations 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 Analog Integrations 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 Analog Integrations, you can compare the effects of market volatilities on Fubon MSCI and Analog Integrations 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 Analog Integrations. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fubon MSCI and Analog Integrations.
Diversification Opportunities for Fubon MSCI and Analog Integrations
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Fubon and Analog is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Fubon MSCI Taiwan and Analog Integrations in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Analog Integrations 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 Analog Integrations. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Analog Integrations has no effect on the direction of Fubon MSCI i.e., Fubon MSCI and Analog Integrations go up and down completely randomly.
Pair Corralation between Fubon MSCI and Analog Integrations
Assuming the 90 days trading horizon Fubon MSCI Taiwan is expected to generate 0.39 times more return on investment than Analog Integrations. However, Fubon MSCI Taiwan is 2.58 times less risky than Analog Integrations. It trades about 0.09 of its potential returns per unit of risk. Analog Integrations is currently generating about 0.01 per unit of risk. If you would invest 8,120 in Fubon MSCI Taiwan on September 1, 2024 and sell it today you would earn a total of 5,645 from holding Fubon MSCI Taiwan or generate 69.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fubon MSCI Taiwan vs. Analog Integrations
Performance |
| Timeline |
| Fubon MSCI Taiwan |
| Analog Integrations |
Fubon MSCI and Analog Integrations Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fubon MSCI and Analog Integrations
The main advantage of trading using opposite Fubon MSCI and Analog Integrations positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fubon MSCI position performs unexpectedly, Analog Integrations 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 Analog Integrations will offset losses from the drop in Analog Integrations' long position.| Fubon MSCI vs. Yuanta Daily Taiwan | Fubon MSCI vs. Yuanta Daily CSI | Fubon MSCI vs. Fubon FTSE Vietnam | Fubon MSCI vs. Fuh Hwa Emerging |
| Analog Integrations vs. Winstek Semiconductor Co | Analog Integrations vs. Kindom Construction Corp | Analog Integrations vs. WiseChip Semiconductor | Analog Integrations vs. Davicom Semiconductor |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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