Correlation Between Fubon MSCI and Launch Technologies
Can any of the company-specific risk be diversified away by investing in both Fubon MSCI and Launch Technologies 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 Launch Technologies 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 Launch Technologies Co, you can compare the effects of market volatilities on Fubon MSCI and Launch Technologies 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 Launch Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fubon MSCI and Launch Technologies.
Diversification Opportunities for Fubon MSCI and Launch Technologies
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Fubon and Launch is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Fubon MSCI Taiwan and Launch Technologies Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Launch Technologies 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 Launch Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Launch Technologies has no effect on the direction of Fubon MSCI i.e., Fubon MSCI and Launch Technologies go up and down completely randomly.
Pair Corralation between Fubon MSCI and Launch Technologies
Assuming the 90 days trading horizon Fubon MSCI Taiwan is expected to generate 2.46 times more return on investment than Launch Technologies. However, Fubon MSCI is 2.46 times more volatile than Launch Technologies Co. It trades about -0.07 of its potential returns per unit of risk. Launch Technologies Co is currently generating about -0.25 per unit of risk. If you would invest 14,435 in Fubon MSCI Taiwan on August 26, 2024 and sell it today you would lose (260.00) from holding Fubon MSCI Taiwan or give up 1.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 90.91% |
| Values | Daily Returns |
Fubon MSCI Taiwan vs. Launch Technologies Co
Performance |
| Timeline |
| Fubon MSCI Taiwan |
| Launch Technologies |
Fubon MSCI and Launch Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fubon MSCI and Launch Technologies
The main advantage of trading using opposite Fubon MSCI and Launch Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fubon MSCI position performs unexpectedly, Launch Technologies 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 Launch Technologies will offset losses from the drop in Launch Technologies' 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 |
| Launch Technologies vs. Sunny Friend Environmental | Launch Technologies vs. Chun Yuan Steel | Launch Technologies vs. U Media Communications | Launch Technologies vs. Tang Eng Iron |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |