Correlation Between NIPPON PROLOGIS and Fuji Media
Can any of the company-specific risk be diversified away by investing in both NIPPON PROLOGIS 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 NIPPON PROLOGIS and Fuji Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NIPPON PROLOGIS REIT and Fuji Media Holdings, you can compare the effects of market volatilities on NIPPON PROLOGIS 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 NIPPON PROLOGIS with a short position of Fuji Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of NIPPON PROLOGIS and Fuji Media.
Diversification Opportunities for NIPPON PROLOGIS and Fuji Media
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between NIPPON and Fuji is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding NIPPON PROLOGIS REIT 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 NIPPON PROLOGIS 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 NIPPON PROLOGIS REIT 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 NIPPON PROLOGIS i.e., NIPPON PROLOGIS and Fuji Media go up and down completely randomly.
Pair Corralation between NIPPON PROLOGIS and Fuji Media
Assuming the 90 days trading horizon NIPPON PROLOGIS REIT is expected to generate 0.98 times more return on investment than Fuji Media. However, NIPPON PROLOGIS REIT is 1.02 times less risky than Fuji Media. It trades about 0.12 of its potential returns per unit of risk. Fuji Media Holdings is currently generating about -0.48 per unit of risk. If you would invest 139,000 in NIPPON PROLOGIS REIT on December 24, 2024 and sell it today you would earn a total of 5,000 from holding NIPPON PROLOGIS REIT or generate 3.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NIPPON PROLOGIS REIT vs. Fuji Media Holdings
Performance |
| Timeline |
| NIPPON PROLOGIS REIT |
| Fuji Media Holdings |
NIPPON PROLOGIS and Fuji Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NIPPON PROLOGIS and Fuji Media
The main advantage of trading using opposite NIPPON PROLOGIS and Fuji Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NIPPON PROLOGIS 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.| NIPPON PROLOGIS vs. Mitsui Chemicals | NIPPON PROLOGIS vs. SLR Investment Corp | NIPPON PROLOGIS vs. HAVERTY FURNITURE A | NIPPON PROLOGIS vs. American Homes 4 |
| Fuji Media vs. Jupiter Fund Management | Fuji Media vs. QLEANAIR AB SK 50 | Fuji Media vs. Cleanaway Waste Management | Fuji Media vs. CHINA SOUTHN AIR H |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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