Correlation Between Fubon SSE180 and Fubon Hang
Can any of the company-specific risk be diversified away by investing in both Fubon SSE180 and Fubon Hang 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 SSE180 and Fubon Hang into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fubon SSE180 Leveraged and Fubon Hang Seng, you can compare the effects of market volatilities on Fubon SSE180 and Fubon Hang 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 SSE180 with a short position of Fubon Hang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fubon SSE180 and Fubon Hang.
Diversification Opportunities for Fubon SSE180 and Fubon Hang
-0.91 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Fubon and Fubon is -0.91. Overlapping area represents the amount of risk that can be diversified away by holding Fubon SSE180 Leveraged and Fubon Hang Seng in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fubon Hang Seng and Fubon SSE180 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 SSE180 Leveraged are associated (or correlated) with Fubon Hang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fubon Hang Seng has no effect on the direction of Fubon SSE180 i.e., Fubon SSE180 and Fubon Hang go up and down completely randomly.
Pair Corralation between Fubon SSE180 and Fubon Hang
Assuming the 90 days trading horizon Fubon SSE180 Leveraged is expected to under-perform the Fubon Hang. In addition to that, Fubon SSE180 is 1.65 times more volatile than Fubon Hang Seng. It trades about 0.0 of its total potential returns per unit of risk. Fubon Hang Seng is currently generating about 0.2 per unit of volatility. If you would invest 1,203 in Fubon Hang Seng on September 4, 2024 and sell it today you would earn a total of 68.00 from holding Fubon Hang Seng or generate 5.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fubon SSE180 Leveraged vs. Fubon Hang Seng
Performance |
| Timeline |
| Fubon SSE180 Leveraged |
| Fubon Hang Seng |
Fubon SSE180 and Fubon Hang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fubon SSE180 and Fubon Hang
The main advantage of trading using opposite Fubon SSE180 and Fubon Hang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fubon SSE180 position performs unexpectedly, Fubon Hang 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 Fubon Hang will offset losses from the drop in Fubon Hang's long position.| Fubon SSE180 vs. Fubon Hang Seng | Fubon SSE180 vs. Fubon SP Preferred | Fubon SSE180 vs. Fubon NASDAQ 100 1X | Fubon SSE180 vs. Fubon TWSE Corporate |
| Fubon Hang vs. Cathay Taiwan 5G | Fubon Hang vs. Ruentex Development Co | Fubon Hang vs. Symtek Automation Asia | Fubon Hang vs. CTCI 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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