Correlation Between Logah Technology and Fubon Taiwan
Can any of the company-specific risk be diversified away by investing in both Logah Technology and Fubon Taiwan 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 Logah Technology and Fubon Taiwan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Logah Technology Corp and Fubon Taiwan Technology, you can compare the effects of market volatilities on Logah Technology and Fubon Taiwan 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 Logah Technology with a short position of Fubon Taiwan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Logah Technology and Fubon Taiwan.
Diversification Opportunities for Logah Technology and Fubon Taiwan
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Logah and Fubon is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Logah Technology Corp and Fubon Taiwan Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fubon Taiwan Technology and Logah 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 Logah Technology Corp are associated (or correlated) with Fubon Taiwan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fubon Taiwan Technology has no effect on the direction of Logah Technology i.e., Logah Technology and Fubon Taiwan go up and down completely randomly.
Pair Corralation between Logah Technology and Fubon Taiwan
Assuming the 90 days trading horizon Logah Technology Corp is expected to under-perform the Fubon Taiwan. In addition to that, Logah Technology is 2.53 times more volatile than Fubon Taiwan Technology. It trades about -0.1 of its total potential returns per unit of risk. Fubon Taiwan Technology is currently generating about 0.23 per unit of volatility. If you would invest 19,330 in Fubon Taiwan Technology on October 10, 2024 and sell it today you would earn a total of 1,040 from holding Fubon Taiwan Technology or generate 5.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Logah Technology Corp vs. Fubon Taiwan Technology
Performance |
| Timeline |
| Logah Technology Corp |
| Fubon Taiwan Technology |
Logah Technology and Fubon Taiwan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Logah Technology and Fubon Taiwan
The main advantage of trading using opposite Logah Technology and Fubon Taiwan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Logah Technology position performs unexpectedly, Fubon Taiwan 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 Taiwan will offset losses from the drop in Fubon Taiwan's long position.| Logah Technology vs. Holy Stone Enterprise | Logah Technology vs. Walsin Technology Corp | Logah Technology vs. Yageo Corp | Logah Technology vs. HannStar Board Corp |
| Fubon Taiwan vs. Fubon NIFTY | Fubon Taiwan vs. eCloudvalley Digital Technology | Fubon Taiwan vs. Logah Technology Corp | Fubon Taiwan vs. Advanced Wireless Semiconductor |
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.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |