Correlation Between Sunnic Technology and Fubon Financial
Can any of the company-specific risk be diversified away by investing in both Sunnic Technology 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 Sunnic Technology and Fubon Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sunnic Technology Merchandise and Fubon Financial Holding, you can compare the effects of market volatilities on Sunnic Technology 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 Sunnic Technology with a short position of Fubon Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sunnic Technology and Fubon Financial.
Diversification Opportunities for Sunnic Technology and Fubon Financial
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Sunnic and Fubon is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Sunnic Technology Merchandise 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 Sunnic Technology 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 Sunnic Technology Merchandise 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 Sunnic Technology i.e., Sunnic Technology and Fubon Financial go up and down completely randomly.
Pair Corralation between Sunnic Technology and Fubon Financial
Assuming the 90 days trading horizon Sunnic Technology Merchandise is expected to under-perform the Fubon Financial. In addition to that, Sunnic Technology is 2.43 times more volatile than Fubon Financial Holding. It trades about -0.12 of its total potential returns per unit of risk. Fubon Financial Holding is currently generating about 0.0 per unit of volatility. If you would invest 9,040 in Fubon Financial Holding on August 29, 2024 and sell it today you would lose (30.00) from holding Fubon Financial Holding or give up 0.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sunnic Technology Merchandise vs. Fubon Financial Holding
Performance |
| Timeline |
| Sunnic Technology |
| Fubon Financial Holding |
Sunnic Technology and Fubon Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sunnic Technology and Fubon Financial
The main advantage of trading using opposite Sunnic Technology and Fubon Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sunnic Technology 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.| Sunnic Technology vs. RiTdisplay Corp | Sunnic Technology vs. Great Computer | Sunnic Technology vs. Ma Kuang Healthcare | Sunnic Technology vs. Loop Telecommunication International |
| Fubon Financial vs. Taiwan Secom Co | Fubon Financial vs. TTET Union Corp | Fubon Financial vs. China Steel Chemical | Fubon Financial vs. Taiwan Shin Kong |
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 Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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