Correlation Between USWE SPORTS and FUJITSU
Can any of the company-specific risk be diversified away by investing in both USWE SPORTS and FUJITSU 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 USWE SPORTS and FUJITSU into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between USWE SPORTS AB and FUJITSU LTD ADR, you can compare the effects of market volatilities on USWE SPORTS and FUJITSU 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 USWE SPORTS with a short position of FUJITSU. Check out your portfolio center. Please also check ongoing floating volatility patterns of USWE SPORTS and FUJITSU.
Diversification Opportunities for USWE SPORTS and FUJITSU
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between USWE and FUJITSU is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding USWE SPORTS AB and FUJITSU LTD ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FUJITSU LTD ADR and USWE SPORTS 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 USWE SPORTS AB are associated (or correlated) with FUJITSU. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FUJITSU LTD ADR has no effect on the direction of USWE SPORTS i.e., USWE SPORTS and FUJITSU go up and down completely randomly.
Pair Corralation between USWE SPORTS and FUJITSU
Assuming the 90 days horizon USWE SPORTS is expected to generate 1.91 times less return on investment than FUJITSU. In addition to that, USWE SPORTS is 1.07 times more volatile than FUJITSU LTD ADR. It trades about 0.13 of its total potential returns per unit of risk. FUJITSU LTD ADR is currently generating about 0.28 per unit of volatility. If you would invest 1,600 in FUJITSU LTD ADR on September 5, 2024 and sell it today you would earn a total of 190.00 from holding FUJITSU LTD ADR or generate 11.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
USWE SPORTS AB vs. FUJITSU LTD ADR
Performance |
| Timeline |
| USWE SPORTS AB |
| FUJITSU LTD ADR |
USWE SPORTS and FUJITSU Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with USWE SPORTS and FUJITSU
The main advantage of trading using opposite USWE SPORTS and FUJITSU positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if USWE SPORTS position performs unexpectedly, FUJITSU 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 FUJITSU will offset losses from the drop in FUJITSU's long position.| USWE SPORTS vs. Li Ning Company | USWE SPORTS vs. SHIMANO INC UNSPADR10 | USWE SPORTS vs. Superior Plus Corp | USWE SPORTS vs. NMI Holdings |
| FUJITSU vs. SPORT LISBOA E | FUJITSU vs. Ming Le Sports | FUJITSU vs. NTG Nordic Transport | FUJITSU vs. USWE SPORTS AB |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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