Correlation Between Fu Burg and Quanta Computer
Can any of the company-specific risk be diversified away by investing in both Fu Burg and Quanta Computer 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 Fu Burg and Quanta Computer into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fu Burg Industrial and Quanta Computer, you can compare the effects of market volatilities on Fu Burg and Quanta Computer 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 Fu Burg with a short position of Quanta Computer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fu Burg and Quanta Computer.
Diversification Opportunities for Fu Burg and Quanta Computer
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between 8929 and Quanta is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Fu Burg Industrial and Quanta Computer in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Quanta Computer and Fu Burg 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 Fu Burg Industrial are associated (or correlated) with Quanta Computer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Quanta Computer has no effect on the direction of Fu Burg i.e., Fu Burg and Quanta Computer go up and down completely randomly.
Pair Corralation between Fu Burg and Quanta Computer
Assuming the 90 days trading horizon Fu Burg Industrial is expected to generate 2.12 times more return on investment than Quanta Computer. However, Fu Burg is 2.12 times more volatile than Quanta Computer. It trades about 0.36 of its potential returns per unit of risk. Quanta Computer is currently generating about -0.09 per unit of risk. If you would invest 2,435 in Fu Burg Industrial on September 2, 2024 and sell it today you would earn a total of 960.00 from holding Fu Burg Industrial or generate 39.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fu Burg Industrial vs. Quanta Computer
Performance |
| Timeline |
| Fu Burg Industrial |
| Quanta Computer |
Fu Burg and Quanta Computer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fu Burg and Quanta Computer
The main advantage of trading using opposite Fu Burg and Quanta Computer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fu Burg position performs unexpectedly, Quanta Computer 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 Quanta Computer will offset losses from the drop in Quanta Computer's long position.| Fu Burg vs. Gloria Material Technology | Fu Burg vs. Wei Chih Steel | Fu Burg vs. Daxin Materials Corp | Fu Burg vs. Nankang Rubber Tire |
| Quanta Computer vs. Compal Electronics | Quanta Computer vs. Asustek Computer | Quanta Computer vs. Delta Electronics | Quanta Computer vs. Inventec 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |