Correlation Between Fubon 1 and Fubon NIFTY
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By analyzing existing cross correlation between Fubon 1 3 Years and Fubon NIFTY, you can compare the effects of market volatilities on Fubon 1 and Fubon NIFTY 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 1 with a short position of Fubon NIFTY. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fubon 1 and Fubon NIFTY.
Diversification Opportunities for Fubon 1 and Fubon NIFTY
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Fubon and Fubon is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Fubon 1 3 Years and Fubon NIFTY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fubon NIFTY and Fubon 1 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 1 3 Years are associated (or correlated) with Fubon NIFTY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fubon NIFTY has no effect on the direction of Fubon 1 i.e., Fubon 1 and Fubon NIFTY go up and down completely randomly.
Pair Corralation between Fubon 1 and Fubon NIFTY
Assuming the 90 days trading horizon Fubon 1 3 Years is expected to generate 0.37 times more return on investment than Fubon NIFTY. However, Fubon 1 3 Years is 2.71 times less risky than Fubon NIFTY. It trades about 0.17 of its potential returns per unit of risk. Fubon NIFTY is currently generating about -0.01 per unit of risk. If you would invest 4,221 in Fubon 1 3 Years on December 30, 2024 and sell it today you would earn a total of 115.00 from holding Fubon 1 3 Years or generate 2.72% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Fubon 1 3 Years vs. Fubon NIFTY
Performance |
Timeline |
Fubon 1 3 |
Fubon NIFTY |
Fubon 1 and Fubon NIFTY Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Fubon 1 and Fubon NIFTY
The main advantage of trading using opposite Fubon 1 and Fubon NIFTY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fubon 1 position performs unexpectedly, Fubon NIFTY 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 NIFTY will offset losses from the drop in Fubon NIFTY's long position.Fubon 1 vs. Fubon Hang Seng | Fubon 1 vs. Fubon SP Preferred | Fubon 1 vs. Fubon NASDAQ 100 1X | Fubon 1 vs. Fubon TWSE Corporate |
Fubon NIFTY vs. Fubon Hang Seng | Fubon NIFTY vs. Fubon SP Preferred | Fubon NIFTY vs. Fubon NASDAQ 100 1X | Fubon NIFTY vs. Fubon TWSE Corporate |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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