Correlation Between Corsair Gaming and FAST RETAIL
Can any of the company-specific risk be diversified away by investing in both Corsair Gaming and FAST RETAIL 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 Corsair Gaming and FAST RETAIL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Corsair Gaming and FAST RETAIL ADR, you can compare the effects of market volatilities on Corsair Gaming and FAST RETAIL 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 Corsair Gaming with a short position of FAST RETAIL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Corsair Gaming and FAST RETAIL.
Diversification Opportunities for Corsair Gaming and FAST RETAIL
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Corsair and FAST is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Corsair Gaming and FAST RETAIL ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FAST RETAIL ADR and Corsair Gaming 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 Corsair Gaming are associated (or correlated) with FAST RETAIL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FAST RETAIL ADR has no effect on the direction of Corsair Gaming i.e., Corsair Gaming and FAST RETAIL go up and down completely randomly.
Pair Corralation between Corsair Gaming and FAST RETAIL
Assuming the 90 days horizon Corsair Gaming is expected to generate 1.66 times more return on investment than FAST RETAIL. However, Corsair Gaming is 1.66 times more volatile than FAST RETAIL ADR. It trades about 0.4 of its potential returns per unit of risk. FAST RETAIL ADR is currently generating about -0.14 per unit of risk. If you would invest 680.00 in Corsair Gaming on November 3, 2024 and sell it today you would earn a total of 216.00 from holding Corsair Gaming or generate 31.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Corsair Gaming vs. FAST RETAIL ADR
Performance |
| Timeline |
| Corsair Gaming |
| FAST RETAIL ADR |
Corsair Gaming and FAST RETAIL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Corsair Gaming and FAST RETAIL
The main advantage of trading using opposite Corsair Gaming and FAST RETAIL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Corsair Gaming position performs unexpectedly, FAST RETAIL 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 FAST RETAIL will offset losses from the drop in FAST RETAIL's long position.| Corsair Gaming vs. BRIT AMER TOBACCO | Corsair Gaming vs. CEOTRONICS | Corsair Gaming vs. Acadia Healthcare | Corsair Gaming vs. US Physical Therapy |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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