Correlation Between Fubon Financial and Da Lue
Can any of the company-specific risk be diversified away by investing in both Fubon Financial and Da Lue 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 Da Lue 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 Da Lue International, you can compare the effects of market volatilities on Fubon Financial and Da Lue 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 Da Lue. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fubon Financial and Da Lue.
Diversification Opportunities for Fubon Financial and Da Lue
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Fubon and 4804 is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Fubon Financial Holding and Da Lue International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Da Lue International 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 Da Lue. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Da Lue International has no effect on the direction of Fubon Financial i.e., Fubon Financial and Da Lue go up and down completely randomly.
Pair Corralation between Fubon Financial and Da Lue
If you would invest 6,010 in Fubon Financial Holding on October 15, 2024 and sell it today you would earn a total of 40.00 from holding Fubon Financial Holding or generate 0.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Fubon Financial Holding vs. Da Lue International
Performance |
| Timeline |
| Fubon Financial Holding |
| Da Lue International |
Fubon Financial and Da Lue Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fubon Financial and Da Lue
The main advantage of trading using opposite Fubon Financial and Da Lue positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fubon Financial position performs unexpectedly, Da Lue 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 Da Lue will offset losses from the drop in Da Lue's long position.| Fubon Financial vs. ReaLy Development Construction | Fubon Financial vs. LandMark Optoelectronics | Fubon Financial vs. Ruentex Engineering Construction | Fubon Financial vs. New Asia Construction |
| Da Lue vs. U Media Communications | Da Lue vs. WinMate Communication INC | Da Lue vs. RiTdisplay Corp | Da Lue vs. Sunspring Metal Corp |
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 Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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