Correlation Between Yuanta Securities and Fubon MSCI
Can any of the company-specific risk be diversified away by investing in both Yuanta Securities and Fubon MSCI 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 Yuanta Securities and Fubon MSCI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Yuanta Securities Investment and Fubon MSCI Taiwan, you can compare the effects of market volatilities on Yuanta Securities and Fubon MSCI 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 Yuanta Securities with a short position of Fubon MSCI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yuanta Securities and Fubon MSCI.
Diversification Opportunities for Yuanta Securities and Fubon MSCI
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Yuanta and Fubon is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Yuanta Securities Investment and Fubon MSCI Taiwan in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fubon MSCI Taiwan and Yuanta Securities 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 Yuanta Securities Investment are associated (or correlated) with Fubon MSCI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fubon MSCI Taiwan has no effect on the direction of Yuanta Securities i.e., Yuanta Securities and Fubon MSCI go up and down completely randomly.
Pair Corralation between Yuanta Securities and Fubon MSCI
Assuming the 90 days trading horizon Yuanta Securities Investment is expected to under-perform the Fubon MSCI. But the etf apears to be less risky and, when comparing its historical volatility, Yuanta Securities Investment is 1.99 times less risky than Fubon MSCI. The etf trades about -0.58 of its potential returns per unit of risk. The Fubon MSCI Taiwan is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 14,525 in Fubon MSCI Taiwan on November 18, 2024 and sell it today you would lose (105.00) from holding Fubon MSCI Taiwan or give up 0.72% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yuanta Securities Investment vs. Fubon MSCI Taiwan
Performance |
| Timeline |
| Yuanta Securities |
| Fubon MSCI Taiwan |
Yuanta Securities and Fubon MSCI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yuanta Securities and Fubon MSCI
The main advantage of trading using opposite Yuanta Securities and Fubon MSCI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yuanta Securities position performs unexpectedly, Fubon MSCI 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 MSCI will offset losses from the drop in Fubon MSCI's long position.| Yuanta Securities vs. Yuanta Daily SP | Yuanta Securities vs. Yuanta Securities Investment | Yuanta Securities vs. Yuanta SP GSCI | Yuanta Securities vs. Yuanta Global NexGen |
| 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 |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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