Correlation Between Taisol Electronics and Fubon Financial
Can any of the company-specific risk be diversified away by investing in both Taisol Electronics and Fubon Financial 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 Taisol Electronics and Fubon Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Taisol Electronics Co and Fubon Financial Holding, you can compare the effects of market volatilities on Taisol Electronics and Fubon Financial 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 Taisol Electronics with a short position of Fubon Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Taisol Electronics and Fubon Financial.
Diversification Opportunities for Taisol Electronics and Fubon Financial
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Taisol and Fubon is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Taisol Electronics Co and Fubon Financial Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fubon Financial Holding and Taisol Electronics 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 Taisol Electronics Co are associated (or correlated) with Fubon Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fubon Financial Holding has no effect on the direction of Taisol Electronics i.e., Taisol Electronics and Fubon Financial go up and down completely randomly.
Pair Corralation between Taisol Electronics and Fubon Financial
Assuming the 90 days trading horizon Taisol Electronics Co is expected to generate 9.06 times more return on investment than Fubon Financial. However, Taisol Electronics is 9.06 times more volatile than Fubon Financial Holding. It trades about 0.05 of its potential returns per unit of risk. Fubon Financial Holding is currently generating about 0.0 per unit of risk. If you would invest 4,655 in Taisol Electronics Co on August 31, 2024 and sell it today you would earn a total of 2,625 from holding Taisol Electronics Co or generate 56.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Taisol Electronics Co vs. Fubon Financial Holding
Performance |
| Timeline |
| Taisol Electronics |
| Fubon Financial Holding |
Taisol Electronics and Fubon Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Taisol Electronics and Fubon Financial
The main advantage of trading using opposite Taisol Electronics and Fubon Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Taisol Electronics position performs unexpectedly, Fubon Financial 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 Financial will offset losses from the drop in Fubon Financial's long position.| Taisol Electronics vs. Hon Hai Precision | Taisol Electronics vs. Delta Electronics | Taisol Electronics vs. LARGAN Precision Co | Taisol Electronics vs. Yageo Corp |
| Fubon Financial vs. Lien Chang Electronic | Fubon Financial vs. Taisol Electronics Co | Fubon Financial vs. Tung Thih Electronic | Fubon Financial vs. WT Microelectronics 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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