Correlation Between Fubon Financial and Ping An
Can any of the company-specific risk be diversified away by investing in both Fubon Financial and Ping An 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 Ping An 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 Ping An Insurance, you can compare the effects of market volatilities on Fubon Financial and Ping An 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 Ping An. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fubon Financial and Ping An.
Diversification Opportunities for Fubon Financial and Ping An
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Fubon and Ping is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Fubon Financial Holding and Ping An Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ping An Insurance 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 Ping An. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ping An Insurance has no effect on the direction of Fubon Financial i.e., Fubon Financial and Ping An go up and down completely randomly.
Pair Corralation between Fubon Financial and Ping An
Assuming the 90 days trading horizon Fubon Financial Holding is expected to generate 0.42 times more return on investment than Ping An. However, Fubon Financial Holding is 2.36 times less risky than Ping An. It trades about 0.14 of its potential returns per unit of risk. Ping An Insurance is currently generating about 0.02 per unit of risk. If you would invest 8,634 in Fubon Financial Holding on September 12, 2025 and sell it today you would earn a total of 886.00 from holding Fubon Financial Holding or generate 10.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 96.83% |
| Values | Daily Returns |
Fubon Financial Holding vs. Ping An Insurance
Performance |
| Timeline |
| Fubon Financial Holding |
| Ping An Insurance |
Fubon Financial and Ping An Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fubon Financial and Ping An
The main advantage of trading using opposite Fubon Financial and Ping An positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fubon Financial position performs unexpectedly, Ping An 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 Ping An will offset losses from the drop in Ping An's long position.| Fubon Financial vs. Cathay Financial Holding | Fubon Financial vs. CTBC Financial Holding | Fubon Financial vs. China Development Financial | Fubon Financial vs. Yuanta Financial Holdings |
| Ping An vs. China Life Insurance | Ping An vs. Bank of China | Ping An vs. AIA Group Ltd | Ping An vs. Allianz SE |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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