Correlation Between Fubon Financial and Amtran Technology
Can any of the company-specific risk be diversified away by investing in both Fubon Financial and Amtran Technology 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 Financial and Amtran Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fubon Financial Holding and Amtran Technology Co, you can compare the effects of market volatilities on Fubon Financial and Amtran Technology 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 Financial with a short position of Amtran Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fubon Financial and Amtran Technology.
Diversification Opportunities for Fubon Financial and Amtran Technology
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Fubon and Amtran is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Fubon Financial Holding and Amtran Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amtran Technology and Fubon Financial 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 Financial Holding are associated (or correlated) with Amtran Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amtran Technology has no effect on the direction of Fubon Financial i.e., Fubon Financial and Amtran Technology go up and down completely randomly.
Pair Corralation between Fubon Financial and Amtran Technology
Assuming the 90 days trading horizon Fubon Financial is expected to generate 10.07 times less return on investment than Amtran Technology. But when comparing it to its historical volatility, Fubon Financial Holding is 13.48 times less risky than Amtran Technology. It trades about 0.18 of its potential returns per unit of risk. Amtran Technology Co is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 1,800 in Amtran Technology Co on November 18, 2024 and sell it today you would earn a total of 55.00 from holding Amtran Technology Co or generate 3.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fubon Financial Holding vs. Amtran Technology Co
Performance |
| Timeline |
| Fubon Financial Holding |
| Amtran Technology |
Fubon Financial and Amtran Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fubon Financial and Amtran Technology
The main advantage of trading using opposite Fubon Financial and Amtran Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fubon Financial position performs unexpectedly, Amtran Technology 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 Amtran Technology will offset losses from the drop in Amtran Technology's long position.| Fubon Financial vs. Onyx Healthcare | Fubon Financial vs. Shih Kuen Plastics | Fubon Financial vs. CHC Healthcare Group | Fubon Financial vs. Daxin Materials Corp |
| Amtran Technology vs. Standard Foods Corp | Amtran Technology vs. Century Iron And | Amtran Technology vs. Tradetool Auto Co | Amtran Technology vs. Trade Van Information Services |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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