Correlation Between Fubon 1 and Capital Ice
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By analyzing existing cross correlation between Fubon 1 3 Years and Capital Ice 1 5, you can compare the effects of market volatilities on Fubon 1 and Capital Ice 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 Capital Ice. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fubon 1 and Capital Ice.
Diversification Opportunities for Fubon 1 and Capital Ice
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Fubon and Capital is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Fubon 1 3 Years and Capital Ice 1 5 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Capital Ice 1 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 Capital Ice. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Capital Ice 1 has no effect on the direction of Fubon 1 i.e., Fubon 1 and Capital Ice go up and down completely randomly.
Pair Corralation between Fubon 1 and Capital Ice
Assuming the 90 days trading horizon Fubon 1 3 Years is expected to generate 0.68 times more return on investment than Capital Ice. However, Fubon 1 3 Years is 1.46 times less risky than Capital Ice. It trades about 0.46 of its potential returns per unit of risk. Capital Ice 1 5 is currently generating about 0.15 per unit of risk. If you would invest 4,113 in Fubon 1 3 Years on September 5, 2024 and sell it today you would earn a total of 120.00 from holding Fubon 1 3 Years or generate 2.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fubon 1 3 Years vs. Capital Ice 1 5
Performance |
| Timeline |
| Fubon 1 3 |
| Capital Ice 1 |
Fubon 1 and Capital Ice Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fubon 1 and Capital Ice
The main advantage of trading using opposite Fubon 1 and Capital Ice positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fubon 1 position performs unexpectedly, Capital Ice 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 Capital Ice will offset losses from the drop in Capital Ice's long position.| Fubon 1 vs. Ruentex Development Co | Fubon 1 vs. Symtek Automation Asia | Fubon 1 vs. CTCI Corp | Fubon 1 vs. Information Technology Total |
| Capital Ice vs. Capital ICE 15 | Capital Ice vs. Capital ICE International15 | Capital Ice vs. Capital BofA Merrill | Capital Ice vs. Capital Nasdaq Biotechnology |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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