Correlation Between Fubon 1 and Fubon Dow
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By analyzing existing cross correlation between Fubon 1 3 Years and Fubon Dow Jones, you can compare the effects of market volatilities on Fubon 1 and Fubon Dow 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 1 with a short position of Fubon Dow. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fubon 1 and Fubon Dow.
Diversification Opportunities for Fubon 1 and Fubon Dow
Excellent diversification
The 3 months correlation between Fubon and Fubon is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Fubon 1 3 Years and Fubon Dow Jones in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fubon Dow Jones and Fubon 1 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 1 3 Years are associated (or correlated) with Fubon Dow. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fubon Dow Jones has no effect on the direction of Fubon 1 i.e., Fubon 1 and Fubon Dow go up and down completely randomly.
Pair Corralation between Fubon 1 and Fubon Dow
Assuming the 90 days trading horizon Fubon 1 is expected to generate 1.31 times less return on investment than Fubon Dow. But when comparing it to its historical volatility, Fubon 1 3 Years is 3.83 times less risky than Fubon Dow. It trades about 0.12 of its potential returns per unit of risk. Fubon Dow Jones is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,896 in Fubon Dow Jones on August 31, 2024 and sell it today you would earn a total of 271.00 from holding Fubon Dow Jones or generate 14.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.73% |
| Values | Daily Returns |
Fubon 1 3 Years vs. Fubon Dow Jones
Performance |
| Timeline |
| Fubon 1 3 |
| Fubon Dow Jones |
Fubon 1 and Fubon Dow Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fubon 1 and Fubon Dow
The main advantage of trading using opposite Fubon 1 and Fubon Dow positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fubon 1 position performs unexpectedly, Fubon Dow 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 Dow will offset losses from the drop in Fubon Dow's long position.| Fubon 1 vs. Fubon Hang Seng | Fubon 1 vs. Fubon SP Preferred | Fubon 1 vs. Fubon NASDAQ 100 1X | Fubon 1 vs. Fubon TWSE Corporate |
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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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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