Correlation Between Fubon MSCI and P Duke
Can any of the company-specific risk be diversified away by investing in both Fubon MSCI and P Duke 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 P Duke 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 P Duke Technology Co, you can compare the effects of market volatilities on Fubon MSCI and P Duke 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 P Duke. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fubon MSCI and P Duke.
Diversification Opportunities for Fubon MSCI and P Duke
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Fubon and 8109 is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Fubon MSCI Taiwan and P Duke Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on P Duke 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 P Duke. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of P Duke Technology has no effect on the direction of Fubon MSCI i.e., Fubon MSCI and P Duke go up and down completely randomly.
Pair Corralation between Fubon MSCI and P Duke
Assuming the 90 days trading horizon Fubon MSCI Taiwan is expected to generate 0.97 times more return on investment than P Duke. However, Fubon MSCI Taiwan is 1.03 times less risky than P Duke. It trades about 0.1 of its potential returns per unit of risk. P Duke Technology Co is currently generating about 0.03 per unit of risk. If you would invest 8,070 in Fubon MSCI Taiwan on September 3, 2024 and sell it today you would earn a total of 5,695 from holding Fubon MSCI Taiwan or generate 70.57% 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. P Duke Technology Co
Performance |
| Timeline |
| Fubon MSCI Taiwan |
| P Duke Technology |
Fubon MSCI and P Duke Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fubon MSCI and P Duke
The main advantage of trading using opposite Fubon MSCI and P Duke positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fubon MSCI position performs unexpectedly, P Duke 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 P Duke will offset losses from the drop in P Duke's long position.| Fubon MSCI vs. Cathay Taiwan 5G | Fubon MSCI vs. Ruentex Development Co | Fubon MSCI vs. Symtek Automation Asia | Fubon MSCI vs. CTCI Corp |
| P Duke vs. Sporton International | P Duke vs. Planet Technology | P Duke vs. Posiflex Technology | P Duke vs. ECOVE Environment 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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