Correlation Between Fubon FTSE and YuantaP Shares
Can any of the company-specific risk be diversified away by investing in both Fubon FTSE and YuantaP Shares 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 Fubon FTSE and YuantaP Shares into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fubon FTSE Vietnam and YuantaP shares Taiwan Dividend, you can compare the effects of market volatilities on Fubon FTSE and YuantaP Shares 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 FTSE with a short position of YuantaP Shares. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fubon FTSE and YuantaP Shares.
Diversification Opportunities for Fubon FTSE and YuantaP Shares
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Fubon and YuantaP is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Fubon FTSE Vietnam and YuantaP shares Taiwan Dividend in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YuantaP shares Taiwan and Fubon FTSE 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 FTSE Vietnam are associated (or correlated) with YuantaP Shares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of YuantaP shares Taiwan has no effect on the direction of Fubon FTSE i.e., Fubon FTSE and YuantaP Shares go up and down completely randomly.
Pair Corralation between Fubon FTSE and YuantaP Shares
Assuming the 90 days trading horizon Fubon FTSE Vietnam is expected to generate 1.2 times more return on investment than YuantaP Shares. However, Fubon FTSE is 1.2 times more volatile than YuantaP shares Taiwan Dividend. It trades about 0.09 of its potential returns per unit of risk. YuantaP shares Taiwan Dividend is currently generating about -0.17 per unit of risk. If you would invest 1,149 in Fubon FTSE Vietnam on September 3, 2024 and sell it today you would earn a total of 16.00 from holding Fubon FTSE Vietnam or generate 1.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fubon FTSE Vietnam vs. YuantaP shares Taiwan Dividend
Performance |
| Timeline |
| Fubon FTSE Vietnam |
| YuantaP shares Taiwan |
Fubon FTSE and YuantaP Shares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fubon FTSE and YuantaP Shares
The main advantage of trading using opposite Fubon FTSE and YuantaP Shares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fubon FTSE position performs unexpectedly, YuantaP Shares 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 YuantaP Shares will offset losses from the drop in YuantaP Shares' long position.| Fubon FTSE vs. Cathay Taiwan 5G | Fubon FTSE vs. Ruentex Development Co | Fubon FTSE vs. Symtek Automation Asia | Fubon FTSE vs. CTCI Corp |
| YuantaP Shares vs. YuantaP shares Taiwan Top | YuantaP Shares vs. YuantaP shares MSCI Taiwan | YuantaP Shares vs. YuantaP shares Taiwan GreTai | YuantaP Shares vs. YuantaP shares SSE50 |
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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