Correlation Between Taiwan Sakura and Fu Burg
Can any of the company-specific risk be diversified away by investing in both Taiwan Sakura and Fu Burg 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 Taiwan Sakura and Fu Burg into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Taiwan Sakura Corp and Fu Burg Industrial, you can compare the effects of market volatilities on Taiwan Sakura and Fu Burg 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 Taiwan Sakura with a short position of Fu Burg. Check out your portfolio center. Please also check ongoing floating volatility patterns of Taiwan Sakura and Fu Burg.
Diversification Opportunities for Taiwan Sakura and Fu Burg
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Taiwan and 8929 is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Taiwan Sakura Corp and Fu Burg Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fu Burg Industrial and Taiwan Sakura 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 Taiwan Sakura Corp are associated (or correlated) with Fu Burg. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fu Burg Industrial has no effect on the direction of Taiwan Sakura i.e., Taiwan Sakura and Fu Burg go up and down completely randomly.
Pair Corralation between Taiwan Sakura and Fu Burg
Assuming the 90 days trading horizon Taiwan Sakura Corp is expected to generate 0.49 times more return on investment than Fu Burg. However, Taiwan Sakura Corp is 2.03 times less risky than Fu Burg. It trades about 0.05 of its potential returns per unit of risk. Fu Burg Industrial is currently generating about 0.03 per unit of risk. If you would invest 6,370 in Taiwan Sakura Corp on October 25, 2024 and sell it today you would earn a total of 1,960 from holding Taiwan Sakura Corp or generate 30.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Taiwan Sakura Corp vs. Fu Burg Industrial
Performance |
| Timeline |
| Taiwan Sakura Corp |
| Fu Burg Industrial |
Taiwan Sakura and Fu Burg Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Taiwan Sakura and Fu Burg
The main advantage of trading using opposite Taiwan Sakura and Fu Burg positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Taiwan Sakura position performs unexpectedly, Fu Burg 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 Fu Burg will offset losses from the drop in Fu Burg's long position.| Taiwan Sakura vs. Yulon Finance Corp | Taiwan Sakura vs. Taiwan Secom Co | Taiwan Sakura vs. Pou Chen Corp | Taiwan Sakura vs. Taiwan Hon Chuan |
| Fu Burg vs. Chlitina Holding | Fu Burg vs. Taiyen Biotech Co | Fu Burg vs. Nan Liu Enterprise | Fu Burg vs. DRWu Skincare 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |