Correlation Between SAMS INTERNAT and Fukuyama Transporting
Can any of the company-specific risk be diversified away by investing in both SAMS INTERNAT and Fukuyama Transporting 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 SAMS INTERNAT and Fukuyama Transporting into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SAMS INTERNAT R and Fukuyama Transporting Co, you can compare the effects of market volatilities on SAMS INTERNAT and Fukuyama Transporting 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 SAMS INTERNAT with a short position of Fukuyama Transporting. Check out your portfolio center. Please also check ongoing floating volatility patterns of SAMS INTERNAT and Fukuyama Transporting.
Diversification Opportunities for SAMS INTERNAT and Fukuyama Transporting
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between SAMS and Fukuyama is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding SAMS INTERNAT R and Fukuyama Transporting Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fukuyama Transporting and SAMS INTERNAT 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 SAMS INTERNAT R are associated (or correlated) with Fukuyama Transporting. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fukuyama Transporting has no effect on the direction of SAMS INTERNAT i.e., SAMS INTERNAT and Fukuyama Transporting go up and down completely randomly.
Pair Corralation between SAMS INTERNAT and Fukuyama Transporting
Assuming the 90 days trading horizon SAMS INTERNAT R is expected to generate 0.71 times more return on investment than Fukuyama Transporting. However, SAMS INTERNAT R is 1.41 times less risky than Fukuyama Transporting. It trades about 0.0 of its potential returns per unit of risk. Fukuyama Transporting Co is currently generating about -0.13 per unit of risk. If you would invest 226.00 in SAMS INTERNAT R on August 25, 2024 and sell it today you would lose (1.00) from holding SAMS INTERNAT R or give up 0.44% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
SAMS INTERNAT R vs. Fukuyama Transporting Co
Performance |
| Timeline |
| SAMS INTERNAT R |
| Fukuyama Transporting |
SAMS INTERNAT and Fukuyama Transporting Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SAMS INTERNAT and Fukuyama Transporting
The main advantage of trading using opposite SAMS INTERNAT and Fukuyama Transporting positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SAMS INTERNAT position performs unexpectedly, Fukuyama Transporting 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 Fukuyama Transporting will offset losses from the drop in Fukuyama Transporting's long position.| SAMS INTERNAT vs. Vulcan Materials | SAMS INTERNAT vs. Eagle Materials | SAMS INTERNAT vs. Elmos Semiconductor SE | SAMS INTERNAT vs. Magnachip Semiconductor |
| Fukuyama Transporting vs. Heartland Express | Fukuyama Transporting vs. Superior Plus Corp | Fukuyama Transporting vs. NMI Holdings | Fukuyama Transporting vs. Origin Agritech |
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 Stocks Directory module to find actively traded stocks across global markets.
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