Correlation Between Fubon SSE180 and SYN Tech
Can any of the company-specific risk be diversified away by investing in both Fubon SSE180 and SYN Tech 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 SYN Tech 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 SYN Tech Chem Pharm, you can compare the effects of market volatilities on Fubon SSE180 and SYN Tech 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 SYN Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fubon SSE180 and SYN Tech.
Diversification Opportunities for Fubon SSE180 and SYN Tech
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Fubon and SYN is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Fubon SSE180 Leveraged and SYN Tech Chem Pharm in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SYN Tech Chem 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 SYN Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SYN Tech Chem has no effect on the direction of Fubon SSE180 i.e., Fubon SSE180 and SYN Tech go up and down completely randomly.
Pair Corralation between Fubon SSE180 and SYN Tech
Assuming the 90 days trading horizon Fubon SSE180 is expected to generate 1.09 times less return on investment than SYN Tech. In addition to that, Fubon SSE180 is 2.43 times more volatile than SYN Tech Chem Pharm. It trades about 0.23 of its total potential returns per unit of risk. SYN Tech Chem Pharm is currently generating about 0.6 per unit of volatility. If you would invest 9,270 in SYN Tech Chem Pharm on December 1, 2024 and sell it today you would earn a total of 830.00 from holding SYN Tech Chem Pharm or generate 8.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fubon SSE180 Leveraged vs. SYN Tech Chem Pharm
Performance |
| Timeline |
| Fubon SSE180 Leveraged |
| SYN Tech Chem |
Fubon SSE180 and SYN Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fubon SSE180 and SYN Tech
The main advantage of trading using opposite Fubon SSE180 and SYN Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fubon SSE180 position performs unexpectedly, SYN Tech 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 SYN Tech will offset losses from the drop in SYN Tech's long position.| Fubon SSE180 vs. YuantaP shares Taiwan Top | Fubon SSE180 vs. Yuanta Daily Taiwan | Fubon SSE180 vs. Cathay Taiwan 5G | Fubon SSE180 vs. Yuanta Daily CSI |
| SYN Tech vs. STL Technology Co | SYN Tech vs. Avalue Technology | SYN Tech vs. Castles Technology Co | SYN Tech vs. Lihtai Construction Enterprise |
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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