Correlation Between Fubon FTSE and YuantaP Shares
Can any of the company-specific risk be diversified away by investing in both Fubon FTSE and YuantaP Shares 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 FTSE and YuantaP Shares into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fubon FTSE TWSE and YuantaP shares Taiwan Top, you can compare the effects of market volatilities on Fubon FTSE and YuantaP Shares 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 FTSE with a short position of YuantaP Shares. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fubon FTSE and YuantaP Shares.
Diversification Opportunities for Fubon FTSE and YuantaP Shares
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Fubon and YuantaP is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Fubon FTSE TWSE and YuantaP shares Taiwan Top in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YuantaP shares Taiwan and Fubon FTSE 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 FTSE TWSE are associated (or correlated) with YuantaP Shares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of YuantaP shares Taiwan has no effect on the direction of Fubon FTSE i.e., Fubon FTSE and YuantaP Shares go up and down completely randomly.
Pair Corralation between Fubon FTSE and YuantaP Shares
Assuming the 90 days trading horizon Fubon FTSE TWSE is expected to under-perform the YuantaP Shares. But the etf apears to be less risky and, when comparing its historical volatility, Fubon FTSE TWSE is 1.03 times less risky than YuantaP Shares. The etf trades about -0.02 of its potential returns per unit of risk. The YuantaP shares Taiwan Top is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 19,400 in YuantaP shares Taiwan Top on September 13, 2024 and sell it today you would earn a total of 115.00 from holding YuantaP shares Taiwan Top or generate 0.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fubon FTSE TWSE vs. YuantaP shares Taiwan Top
Performance |
| Timeline |
| Fubon FTSE TWSE |
| YuantaP shares Taiwan |
Fubon FTSE and YuantaP Shares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fubon FTSE and YuantaP Shares
The main advantage of trading using opposite Fubon FTSE and YuantaP Shares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fubon FTSE position performs unexpectedly, YuantaP Shares 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 YuantaP Shares will offset losses from the drop in YuantaP Shares' long position.| Fubon FTSE vs. Fubon Hang Seng | Fubon FTSE vs. Fubon SP Preferred | Fubon FTSE vs. Fubon NASDAQ 100 1X | Fubon FTSE vs. Fubon TWSE Corporate |
| YuantaP Shares vs. Yuanta Daily Taiwan | YuantaP Shares vs. Cathay Taiwan 5G | YuantaP Shares vs. Yuanta Daily CSI | YuantaP Shares vs. Cathay Sustainability High |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |