Correlation Between Strategic Investments and Marubeni
Can any of the company-specific risk be diversified away by investing in both Strategic Investments and Marubeni 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 Strategic Investments and Marubeni into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Strategic Investments AS and Marubeni, you can compare the effects of market volatilities on Strategic Investments and Marubeni 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 Strategic Investments with a short position of Marubeni. Check out your portfolio center. Please also check ongoing floating volatility patterns of Strategic Investments and Marubeni.
Diversification Opportunities for Strategic Investments and Marubeni
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Strategic and Marubeni is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Strategic Investments AS and Marubeni in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marubeni and Strategic Investments 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 Strategic Investments AS are associated (or correlated) with Marubeni. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marubeni has no effect on the direction of Strategic Investments i.e., Strategic Investments and Marubeni go up and down completely randomly.
Pair Corralation between Strategic Investments and Marubeni
Assuming the 90 days horizon Strategic Investments is expected to generate 5.96 times less return on investment than Marubeni. In addition to that, Strategic Investments is 1.82 times more volatile than Marubeni. It trades about 0.02 of its total potential returns per unit of risk. Marubeni is currently generating about 0.17 per unit of volatility. If you would invest 1,374 in Marubeni on September 5, 2024 and sell it today you would earn a total of 92.00 from holding Marubeni or generate 6.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Strategic Investments AS vs. Marubeni
Performance |
| Timeline |
| Strategic Investments |
| Marubeni |
Strategic Investments and Marubeni Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Strategic Investments and Marubeni
The main advantage of trading using opposite Strategic Investments and Marubeni positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Strategic Investments position performs unexpectedly, Marubeni 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 Marubeni will offset losses from the drop in Marubeni's long position.| Strategic Investments vs. Blackstone Group | Strategic Investments vs. BlackRock | Strategic Investments vs. The Bank of | Strategic Investments vs. Ameriprise Financial |
| Marubeni vs. Strategic Investments AS | Marubeni vs. WisdomTree Investments | Marubeni vs. ELMOS SEMICONDUCTOR | Marubeni vs. NXP Semiconductors NV |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Transaction History View history of all your transactions and understand their impact on performance |