Correlation Between Yuanta Securities and Fubon SSE180
Can any of the company-specific risk be diversified away by investing in both Yuanta Securities and Fubon SSE180 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 SSE180 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 SSE180 Leveraged, you can compare the effects of market volatilities on Yuanta Securities and Fubon SSE180 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 SSE180. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yuanta Securities and Fubon SSE180.
Diversification Opportunities for Yuanta Securities and Fubon SSE180
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Yuanta and Fubon is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Yuanta Securities Investment and Fubon SSE180 Leveraged in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fubon SSE180 Leveraged 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 SSE180. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fubon SSE180 Leveraged has no effect on the direction of Yuanta Securities i.e., Yuanta Securities and Fubon SSE180 go up and down completely randomly.
Pair Corralation between Yuanta Securities and Fubon SSE180
If you would invest 3,939 in Fubon SSE180 Leveraged on September 1, 2024 and sell it today you would earn a total of 11.00 from holding Fubon SSE180 Leveraged or generate 0.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 4.35% |
| Values | Daily Returns |
Yuanta Securities Investment vs. Fubon SSE180 Leveraged
Performance |
| Timeline |
| Yuanta Securities |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Fubon SSE180 Leveraged |
Yuanta Securities and Fubon SSE180 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yuanta Securities and Fubon SSE180
The main advantage of trading using opposite Yuanta Securities and Fubon SSE180 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yuanta Securities position performs unexpectedly, Fubon SSE180 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 SSE180 will offset losses from the drop in Fubon SSE180'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 SSE180 vs. Fubon Hang Seng | Fubon SSE180 vs. Fubon SP Preferred | Fubon SSE180 vs. Fubon NASDAQ 100 1X | Fubon SSE180 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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