Correlation Between Fubon Financial and Brighthouse Financial
Can any of the company-specific risk be diversified away by investing in both Fubon Financial and Brighthouse 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 Fubon Financial and Brighthouse Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fubon Financial Holding and Brighthouse Financial, you can compare the effects of market volatilities on Fubon Financial and Brighthouse 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 Fubon Financial with a short position of Brighthouse Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fubon Financial and Brighthouse Financial.
Diversification Opportunities for Fubon Financial and Brighthouse Financial
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Fubon and Brighthouse is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Fubon Financial Holding and Brighthouse Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brighthouse Financial and Fubon Financial 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 Fubon Financial Holding are associated (or correlated) with Brighthouse Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brighthouse Financial has no effect on the direction of Fubon Financial i.e., Fubon Financial and Brighthouse Financial go up and down completely randomly.
Pair Corralation between Fubon Financial and Brighthouse Financial
If you would invest 5,249 in Brighthouse Financial on September 2, 2024 and sell it today you would lose (22.00) from holding Brighthouse Financial or give up 0.42% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.4% |
| Values | Daily Returns |
Fubon Financial Holding vs. Brighthouse Financial
Performance |
| Timeline |
| Fubon Financial Holding |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Brighthouse Financial |
Fubon Financial and Brighthouse Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fubon Financial and Brighthouse Financial
The main advantage of trading using opposite Fubon Financial and Brighthouse Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fubon Financial position performs unexpectedly, Brighthouse 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 Brighthouse Financial will offset losses from the drop in Brighthouse Financial's long position.| Fubon Financial vs. AIA Group Ltd | Fubon Financial vs. Ping An Insurance | Fubon Financial vs. China Life Insurance | Fubon Financial vs. Sanlam Ltd PK |
| Brighthouse Financial vs. Prudential Financial | Brighthouse Financial vs. Lincoln National | Brighthouse Financial vs. Aflac Incorporated | Brighthouse Financial vs. Unum Group |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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