Correlation Between LASSONDE INDUSTINC and FUYO GENERAL
Can any of the company-specific risk be diversified away by investing in both LASSONDE INDUSTINC and FUYO GENERAL 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 LASSONDE INDUSTINC and FUYO GENERAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LASSONDE INDUSTINC A and FUYO GENERAL LEASE, you can compare the effects of market volatilities on LASSONDE INDUSTINC and FUYO GENERAL 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 LASSONDE INDUSTINC with a short position of FUYO GENERAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of LASSONDE INDUSTINC and FUYO GENERAL.
Diversification Opportunities for LASSONDE INDUSTINC and FUYO GENERAL
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between LASSONDE and FUYO is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding LASSONDE INDUSTINC A and FUYO GENERAL LEASE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FUYO GENERAL LEASE and LASSONDE INDUSTINC 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 LASSONDE INDUSTINC A are associated (or correlated) with FUYO GENERAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FUYO GENERAL LEASE has no effect on the direction of LASSONDE INDUSTINC i.e., LASSONDE INDUSTINC and FUYO GENERAL go up and down completely randomly.
Pair Corralation between LASSONDE INDUSTINC and FUYO GENERAL
Assuming the 90 days horizon LASSONDE INDUSTINC is expected to generate 1.24 times less return on investment than FUYO GENERAL. In addition to that, LASSONDE INDUSTINC is 1.77 times more volatile than FUYO GENERAL LEASE. It trades about 0.11 of its total potential returns per unit of risk. FUYO GENERAL LEASE is currently generating about 0.24 per unit of volatility. If you would invest 6,500 in FUYO GENERAL LEASE on September 4, 2024 and sell it today you would earn a total of 450.00 from holding FUYO GENERAL LEASE or generate 6.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
LASSONDE INDUSTINC A vs. FUYO GENERAL LEASE
Performance |
| Timeline |
| LASSONDE INDUSTINC |
| FUYO GENERAL LEASE |
LASSONDE INDUSTINC and FUYO GENERAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LASSONDE INDUSTINC and FUYO GENERAL
The main advantage of trading using opposite LASSONDE INDUSTINC and FUYO GENERAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LASSONDE INDUSTINC position performs unexpectedly, FUYO GENERAL 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 FUYO GENERAL will offset losses from the drop in FUYO GENERAL's long position.| LASSONDE INDUSTINC vs. FUYO GENERAL LEASE | LASSONDE INDUSTINC vs. Thai Beverage Public | LASSONDE INDUSTINC vs. DELTA AIR LINES | LASSONDE INDUSTINC vs. Suntory Beverage Food |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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