Correlation Between NYSE Composite and Fubon Financial
Can any of the company-specific risk be diversified away by investing in both NYSE Composite 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 NYSE Composite and Fubon Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Fubon Financial Holding, you can compare the effects of market volatilities on NYSE Composite 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 NYSE Composite with a short position of Fubon Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Fubon Financial.
Diversification Opportunities for NYSE Composite and Fubon Financial
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between NYSE and Fubon is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite 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 NYSE Composite 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 NYSE Composite 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 NYSE Composite i.e., NYSE Composite and Fubon Financial go up and down completely randomly.
Pair Corralation between NYSE Composite and Fubon Financial
If you would invest 1,954,967 in NYSE Composite on August 28, 2024 and sell it today you would earn a total of 67,069 from holding NYSE Composite or generate 3.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
NYSE Composite vs. Fubon Financial Holding
Performance |
| Timeline |
NYSE Composite and Fubon Financial Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Fubon Financial Holding
Pair trading matchups for Fubon Financial
Pair Trading with NYSE Composite and Fubon Financial
The main advantage of trading using opposite NYSE Composite and Fubon Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite 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.| NYSE Composite vs. Hooker Furniture | NYSE Composite vs. Hudson Pacific Properties | NYSE Composite vs. Canlan Ice Sports | NYSE Composite vs. Boston Properties |
| 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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