Correlation Between Fubon Financial and Koryo Electronics
Can any of the company-specific risk be diversified away by investing in both Fubon Financial and Koryo Electronics 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 Koryo Electronics 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 Koryo Electronics Co, you can compare the effects of market volatilities on Fubon Financial and Koryo Electronics 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 Koryo Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fubon Financial and Koryo Electronics.
Diversification Opportunities for Fubon Financial and Koryo Electronics
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Fubon and Koryo is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Fubon Financial Holding and Koryo Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Koryo Electronics 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 Koryo Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Koryo Electronics has no effect on the direction of Fubon Financial i.e., Fubon Financial and Koryo Electronics go up and down completely randomly.
Pair Corralation between Fubon Financial and Koryo Electronics
Assuming the 90 days trading horizon Fubon Financial Holding is expected to generate 0.03 times more return on investment than Koryo Electronics. However, Fubon Financial Holding is 39.74 times less risky than Koryo Electronics. It trades about 0.3 of its potential returns per unit of risk. Koryo Electronics Co is currently generating about -0.03 per unit of risk. If you would invest 6,120 in Fubon Financial Holding on December 9, 2024 and sell it today you would earn a total of 30.00 from holding Fubon Financial Holding or generate 0.49% 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. Koryo Electronics Co
Performance |
| Timeline |
| Fubon Financial Holding |
| Koryo Electronics |
Fubon Financial and Koryo Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fubon Financial and Koryo Electronics
The main advantage of trading using opposite Fubon Financial and Koryo Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fubon Financial position performs unexpectedly, Koryo Electronics 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 Koryo Electronics will offset losses from the drop in Koryo Electronics' long position.| Fubon Financial vs. Tait Marketing Distribution | ||
| Fubon Financial vs. Far EasTone Telecommunications | ||
| Fubon Financial vs. Air Asia Co | ||
| Fubon Financial vs. WinMate Communication INC |
| Koryo Electronics vs. Chinese Gamer International | ||
| Koryo Electronics vs. International Games System | ||
| Koryo Electronics vs. Datavan International | ||
| Koryo Electronics vs. GameSparcs Co |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |