Correlation Between Fubon MSCI and Lifestyle Global
Can any of the company-specific risk be diversified away by investing in both Fubon MSCI and Lifestyle Global 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 Lifestyle Global 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 Lifestyle Global Enterprise, you can compare the effects of market volatilities on Fubon MSCI and Lifestyle Global 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 Lifestyle Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fubon MSCI and Lifestyle Global.
Diversification Opportunities for Fubon MSCI and Lifestyle Global
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Fubon and Lifestyle is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Fubon MSCI Taiwan and Lifestyle Global Enterprise in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lifestyle Global Ent 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 Lifestyle Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lifestyle Global Ent has no effect on the direction of Fubon MSCI i.e., Fubon MSCI and Lifestyle Global go up and down completely randomly.
Pair Corralation between Fubon MSCI and Lifestyle Global
If you would invest 14,365 in Fubon MSCI Taiwan on October 13, 2024 and sell it today you would earn a total of 175.00 from holding Fubon MSCI Taiwan or generate 1.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Fubon MSCI Taiwan vs. Lifestyle Global Enterprise
Performance |
| Timeline |
| Fubon MSCI Taiwan |
| Lifestyle Global Ent |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Fubon MSCI and Lifestyle Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fubon MSCI and Lifestyle Global
The main advantage of trading using opposite Fubon MSCI and Lifestyle Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fubon MSCI position performs unexpectedly, Lifestyle Global 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 Lifestyle Global will offset losses from the drop in Lifestyle Global's long position.| Fubon MSCI vs. Yuanta Daily Taiwan | Fubon MSCI vs. Cathay Taiwan 5G | Fubon MSCI vs. Yuanta Daily CSI | Fubon MSCI vs. Cathay Sustainability High |
| Lifestyle Global vs. United Radiant Technology | Lifestyle Global vs. Yuan High Tech Development | Lifestyle Global vs. Central Reinsurance Corp | Lifestyle Global vs. Daxin Materials 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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