Correlation Between Fubon Financial and CNO Financial
Can any of the company-specific risk be diversified away by investing in both Fubon Financial and CNO 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 CNO 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 CNO Financial Group, you can compare the effects of market volatilities on Fubon Financial and CNO 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 CNO Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fubon Financial and CNO Financial.
Diversification Opportunities for Fubon Financial and CNO Financial
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Fubon and CNO is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Fubon Financial Holding and CNO Financial Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CNO Financial Group 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 CNO Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CNO Financial Group has no effect on the direction of Fubon Financial i.e., Fubon Financial and CNO Financial go up and down completely randomly.
Pair Corralation between Fubon Financial and CNO Financial
If you would invest 2,283 in CNO Financial Group on August 28, 2024 and sell it today you would earn a total of 1,750 from holding CNO Financial Group or generate 76.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 1.41% |
| Values | Daily Returns |
Fubon Financial Holding vs. CNO Financial Group
Performance |
| Timeline |
| Fubon Financial Holding |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| CNO Financial Group |
Fubon Financial and CNO Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fubon Financial and CNO Financial
The main advantage of trading using opposite Fubon Financial and CNO Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fubon Financial position performs unexpectedly, CNO 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 CNO Financial will offset losses from the drop in CNO 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 |
| CNO Financial vs. Morningstar Unconstrained Allocation | CNO Financial vs. Via Renewables | CNO Financial vs. Sitka Gold Corp | CNO Financial vs. MSCI ACWI exAUCONSUMER |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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