Correlation Between Bank Of and FUJIFILM Holdings
Can any of the company-specific risk be diversified away by investing in both Bank Of and FUJIFILM Holdings 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 Bank Of and FUJIFILM Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Bank of and FUJIFILM Holdings, you can compare the effects of market volatilities on Bank Of and FUJIFILM Holdings 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 Bank Of with a short position of FUJIFILM Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Of and FUJIFILM Holdings.
Diversification Opportunities for Bank Of and FUJIFILM Holdings
-0.87 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bank and FUJIFILM is -0.87. Overlapping area represents the amount of risk that can be diversified away by holding The Bank of and FUJIFILM Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FUJIFILM Holdings and Bank Of 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 The Bank of are associated (or correlated) with FUJIFILM Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FUJIFILM Holdings has no effect on the direction of Bank Of i.e., Bank Of and FUJIFILM Holdings go up and down completely randomly.
Pair Corralation between Bank Of and FUJIFILM Holdings
Assuming the 90 days horizon The Bank of is expected to generate 0.56 times more return on investment than FUJIFILM Holdings. However, The Bank of is 1.78 times less risky than FUJIFILM Holdings. It trades about 0.18 of its potential returns per unit of risk. FUJIFILM Holdings is currently generating about 0.07 per unit of risk. If you would invest 4,169 in The Bank of on September 14, 2024 and sell it today you would earn a total of 3,455 from holding The Bank of or generate 82.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 99.64% |
| Values | Daily Returns |
The Bank of vs. FUJIFILM Holdings
Performance |
| Timeline |
| The Bank |
| FUJIFILM Holdings |
Bank Of and FUJIFILM Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Of and FUJIFILM Holdings
The main advantage of trading using opposite Bank Of and FUJIFILM Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Of position performs unexpectedly, FUJIFILM Holdings 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 FUJIFILM Holdings will offset losses from the drop in FUJIFILM Holdings' long position.| Bank Of vs. TEXAS ROADHOUSE | Bank Of vs. Taiwan Semiconductor Manufacturing | Bank Of vs. Gold Road Resources | Bank Of vs. BROADSTNET LEADL 00025 |
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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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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