Correlation Between National Western and Fubon Financial
Can any of the company-specific risk be diversified away by investing in both National Western and Fubon 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 National Western and Fubon Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between National Western Life and Fubon Financial Holding, you can compare the effects of market volatilities on National Western and Fubon 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 National Western with a short position of Fubon Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of National Western and Fubon Financial.
Diversification Opportunities for National Western and Fubon Financial
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between National and Fubon is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding National Western Life and Fubon Financial Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fubon Financial Holding and National Western 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 National Western Life are associated (or correlated) with Fubon Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fubon Financial Holding has no effect on the direction of National Western i.e., National Western and Fubon Financial go up and down completely randomly.
Pair Corralation between National Western and Fubon Financial
If you would invest 41,866 in National Western Life on August 28, 2024 and sell it today you would earn a total of 8,132 from holding National Western Life or generate 19.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 1.96% |
| Values | Daily Returns |
National Western Life vs. Fubon Financial Holding
Performance |
| Timeline |
| National Western Life |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Fubon Financial Holding |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
National Western and Fubon Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with National Western and Fubon Financial
The main advantage of trading using opposite National Western and Fubon Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National Western position performs unexpectedly, Fubon 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 Fubon Financial will offset losses from the drop in Fubon Financial's long position.| National Western vs. MetLife Preferred Stock | National Western vs. Prudential Public Limited | National Western vs. CNO Financial Group | National Western vs. FG Annuities Life |
| Fubon Financial vs. AIA Group Ltd | Fubon Financial vs. Ping An Insurance | Fubon Financial vs. China Life Insurance | Fubon Financial vs. Sanlam Ltd PK |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |