Correlation Between Virtu Financial and Fuji Media
Can any of the company-specific risk be diversified away by investing in both Virtu Financial and Fuji Media 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 Virtu Financial and Fuji Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Virtu Financial and Fuji Media Holdings, you can compare the effects of market volatilities on Virtu Financial and Fuji Media 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 Virtu Financial with a short position of Fuji Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Virtu Financial and Fuji Media.
Diversification Opportunities for Virtu Financial and Fuji Media
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Virtu and Fuji is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Virtu Financial and Fuji Media Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fuji Media Holdings and Virtu 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 Virtu Financial are associated (or correlated) with Fuji Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fuji Media Holdings has no effect on the direction of Virtu Financial i.e., Virtu Financial and Fuji Media go up and down completely randomly.
Pair Corralation between Virtu Financial and Fuji Media
Assuming the 90 days horizon Virtu Financial is expected to generate 0.82 times more return on investment than Fuji Media. However, Virtu Financial is 1.23 times less risky than Fuji Media. It trades about 0.08 of its potential returns per unit of risk. Fuji Media Holdings is currently generating about -0.25 per unit of risk. If you would invest 3,360 in Virtu Financial on October 11, 2024 and sell it today you would earn a total of 80.00 from holding Virtu Financial or generate 2.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Virtu Financial vs. Fuji Media Holdings
Performance |
| Timeline |
| Virtu Financial |
| Fuji Media Holdings |
Virtu Financial and Fuji Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Virtu Financial and Fuji Media
The main advantage of trading using opposite Virtu Financial and Fuji Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Virtu Financial position performs unexpectedly, Fuji Media 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 Fuji Media will offset losses from the drop in Fuji Media's long position.| Virtu Financial vs. UET United Electronic | Virtu Financial vs. STMICROELECTRONICS | Virtu Financial vs. STORE ELECTRONIC | Virtu Financial vs. KIMBALL ELECTRONICS |
| Fuji Media vs. Commonwealth Bank of | Fuji Media vs. Virtu Financial | Fuji Media vs. Corsair Gaming | Fuji Media vs. Westinghouse Air Brake |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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