Correlation Between Fubon Financial and Sanlam
Can any of the company-specific risk be diversified away by investing in both Fubon Financial and Sanlam 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 Sanlam 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 Sanlam Ltd PK, you can compare the effects of market volatilities on Fubon Financial and Sanlam 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 Sanlam. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fubon Financial and Sanlam.
Diversification Opportunities for Fubon Financial and Sanlam
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Fubon and Sanlam is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Fubon Financial Holding and Sanlam Ltd PK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sanlam Ltd PK 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 Sanlam. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sanlam Ltd PK has no effect on the direction of Fubon Financial i.e., Fubon Financial and Sanlam go up and down completely randomly.
Pair Corralation between Fubon Financial and Sanlam
If you would invest 982.00 in Sanlam Ltd PK on August 24, 2024 and sell it today you would earn a total of 21.00 from holding Sanlam Ltd PK or generate 2.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 4.35% |
| Values | Daily Returns |
Fubon Financial Holding vs. Sanlam Ltd PK
Performance |
| Timeline |
| Fubon Financial Holding |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Sanlam Ltd PK |
Fubon Financial and Sanlam Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fubon Financial and Sanlam
The main advantage of trading using opposite Fubon Financial and Sanlam positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fubon Financial position performs unexpectedly, Sanlam 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 Sanlam will offset losses from the drop in Sanlam'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 |
| Sanlam vs. Ping An Insurance | Sanlam vs. CNO Financial Group | Sanlam vs. Genworth Financial | Sanlam vs. MetLife Preferred Stock |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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