Correlation Between Fubon Financial and Oneness Biotech
Can any of the company-specific risk be diversified away by investing in both Fubon Financial and Oneness Biotech 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 Oneness Biotech 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 Oneness Biotech Co, you can compare the effects of market volatilities on Fubon Financial and Oneness Biotech 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 Oneness Biotech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fubon Financial and Oneness Biotech.
Diversification Opportunities for Fubon Financial and Oneness Biotech
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Fubon and Oneness is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Fubon Financial Holding and Oneness Biotech Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oneness Biotech 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 Oneness Biotech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oneness Biotech has no effect on the direction of Fubon Financial i.e., Fubon Financial and Oneness Biotech go up and down completely randomly.
Pair Corralation between Fubon Financial and Oneness Biotech
Assuming the 90 days trading horizon Fubon Financial Holding is expected to generate 0.12 times more return on investment than Oneness Biotech. However, Fubon Financial Holding is 8.04 times less risky than Oneness Biotech. It trades about 0.02 of its potential returns per unit of risk. Oneness Biotech Co is currently generating about -0.05 per unit of risk. If you would invest 5,860 in Fubon Financial Holding on August 31, 2024 and sell it today you would earn a total of 140.00 from holding Fubon Financial Holding or generate 2.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.78% |
| Values | Daily Returns |
Fubon Financial Holding vs. Oneness Biotech Co
Performance |
| Timeline |
| Fubon Financial Holding |
| Oneness Biotech |
Fubon Financial and Oneness Biotech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fubon Financial and Oneness Biotech
The main advantage of trading using opposite Fubon Financial and Oneness Biotech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fubon Financial position performs unexpectedly, Oneness Biotech 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 Oneness Biotech will offset losses from the drop in Oneness Biotech's long position.| Fubon Financial vs. Lien Chang Electronic | Fubon Financial vs. Taisol Electronics Co | Fubon Financial vs. Tung Thih Electronic | Fubon Financial vs. WT Microelectronics Co |
| Oneness Biotech vs. Medigen Vaccine Biologics | Oneness Biotech vs. OBI Pharma | Oneness Biotech vs. TaiMed Biologics | Oneness Biotech vs. Tanvex BioPharma |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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