Correlation Between Fubon FTSE and Fubon 1
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By analyzing existing cross correlation between Fubon FTSE Vietnam and Fubon 1 3 Years, you can compare the effects of market volatilities on Fubon FTSE and Fubon 1 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 Fubon 1. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fubon FTSE and Fubon 1.
Diversification Opportunities for Fubon FTSE and Fubon 1
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Fubon and Fubon is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Fubon FTSE Vietnam and Fubon 1 3 Years in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fubon 1 3 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 Fubon 1. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fubon 1 3 has no effect on the direction of Fubon FTSE i.e., Fubon FTSE and Fubon 1 go up and down completely randomly.
Pair Corralation between Fubon FTSE and Fubon 1
Assuming the 90 days trading horizon Fubon FTSE Vietnam is expected to under-perform the Fubon 1. In addition to that, Fubon FTSE is 2.62 times more volatile than Fubon 1 3 Years. It trades about -0.09 of its total potential returns per unit of risk. Fubon 1 3 Years is currently generating about 0.16 per unit of volatility. If you would invest 4,148 in Fubon 1 3 Years on August 28, 2024 and sell it today you would earn a total of 44.00 from holding Fubon 1 3 Years or generate 1.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fubon FTSE Vietnam vs. Fubon 1 3 Years
Performance |
| Timeline |
| Fubon FTSE Vietnam |
| Fubon 1 3 |
Fubon FTSE and Fubon 1 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fubon FTSE and Fubon 1
The main advantage of trading using opposite Fubon FTSE and Fubon 1 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fubon FTSE position performs unexpectedly, Fubon 1 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 1 will offset losses from the drop in Fubon 1's long position.The idea behind Fubon FTSE Vietnam and Fubon 1 3 Years pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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