Correlation Between Fubon TWSE and CTBC 15
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By analyzing existing cross correlation between Fubon TWSE Corporate and CTBC 15 Developed, you can compare the effects of market volatilities on Fubon TWSE and CTBC 15 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 TWSE with a short position of CTBC 15. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fubon TWSE and CTBC 15.
Diversification Opportunities for Fubon TWSE and CTBC 15
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Fubon and CTBC is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Fubon TWSE Corporate and CTBC 15 Developed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CTBC 15 Developed and Fubon TWSE 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 TWSE Corporate are associated (or correlated) with CTBC 15. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CTBC 15 Developed has no effect on the direction of Fubon TWSE i.e., Fubon TWSE and CTBC 15 go up and down completely randomly.
Pair Corralation between Fubon TWSE and CTBC 15
Assuming the 90 days trading horizon Fubon TWSE Corporate is expected to generate 1.71 times more return on investment than CTBC 15. However, Fubon TWSE is 1.71 times more volatile than CTBC 15 Developed. It trades about 0.09 of its potential returns per unit of risk. CTBC 15 Developed is currently generating about 0.01 per unit of risk. If you would invest 2,755 in Fubon TWSE Corporate on September 3, 2024 and sell it today you would earn a total of 1,569 from holding Fubon TWSE Corporate or generate 56.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fubon TWSE Corporate vs. CTBC 15 Developed
Performance |
| Timeline |
| Fubon TWSE Corporate |
| CTBC 15 Developed |
Fubon TWSE and CTBC 15 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fubon TWSE and CTBC 15
The main advantage of trading using opposite Fubon TWSE and CTBC 15 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fubon TWSE position performs unexpectedly, CTBC 15 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 CTBC 15 will offset losses from the drop in CTBC 15's long position.| Fubon TWSE vs. Cathay Taiwan 5G | Fubon TWSE vs. Ruentex Development Co | Fubon TWSE vs. Symtek Automation Asia | Fubon TWSE vs. CTCI Corp |
| CTBC 15 vs. CTBC USD Corporate | CTBC 15 vs. CTBC 20 Year | CTBC 15 vs. CTBC TIP Customized | CTBC 15 vs. CTBC Treasury 20 |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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