Correlation Between Cass Information and TOHOKU EL
Can any of the company-specific risk be diversified away by investing in both Cass Information and TOHOKU EL 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 Cass Information and TOHOKU EL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cass Information Systems and TOHOKU EL PWR, you can compare the effects of market volatilities on Cass Information and TOHOKU EL 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 Cass Information with a short position of TOHOKU EL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cass Information and TOHOKU EL.
Diversification Opportunities for Cass Information and TOHOKU EL
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Cass and TOHOKU is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Cass Information Systems and TOHOKU EL PWR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TOHOKU EL PWR and Cass Information 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 Cass Information Systems are associated (or correlated) with TOHOKU EL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TOHOKU EL PWR has no effect on the direction of Cass Information i.e., Cass Information and TOHOKU EL go up and down completely randomly.
Pair Corralation between Cass Information and TOHOKU EL
Assuming the 90 days horizon Cass Information Systems is expected to generate 0.37 times more return on investment than TOHOKU EL. However, Cass Information Systems is 2.72 times less risky than TOHOKU EL. It trades about -0.14 of its potential returns per unit of risk. TOHOKU EL PWR is currently generating about -0.12 per unit of risk. If you would invest 4,309 in Cass Information Systems on September 13, 2024 and sell it today you would lose (149.00) from holding Cass Information Systems or give up 3.46% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cass Information Systems vs. TOHOKU EL PWR
Performance |
| Timeline |
| Cass Information Systems |
| TOHOKU EL PWR |
Cass Information and TOHOKU EL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cass Information and TOHOKU EL
The main advantage of trading using opposite Cass Information and TOHOKU EL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cass Information position performs unexpectedly, TOHOKU EL 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 TOHOKU EL will offset losses from the drop in TOHOKU EL's long position.| Cass Information vs. Tradegate AG Wertpapierhandelsbank | Cass Information vs. Guidewire Software | Cass Information vs. PT Bank Maybank | Cass Information vs. REVO INSURANCE SPA |
| TOHOKU EL vs. FLOW TRADERS LTD | TOHOKU EL vs. CARSALESCOM | TOHOKU EL vs. Canon Marketing Japan | TOHOKU EL vs. Salesforce |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |