Correlation Between Fuji Electric and Tecogen
Can any of the company-specific risk be diversified away by investing in both Fuji Electric and Tecogen 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 Fuji Electric and Tecogen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fuji Electric Co and Tecogen, you can compare the effects of market volatilities on Fuji Electric and Tecogen 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 Fuji Electric with a short position of Tecogen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fuji Electric and Tecogen.
Diversification Opportunities for Fuji Electric and Tecogen
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Fuji and Tecogen is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Fuji Electric Co and Tecogen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tecogen and Fuji Electric 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 Fuji Electric Co are associated (or correlated) with Tecogen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tecogen has no effect on the direction of Fuji Electric i.e., Fuji Electric and Tecogen go up and down completely randomly.
Pair Corralation between Fuji Electric and Tecogen
If you would invest 1,296 in Fuji Electric Co on August 24, 2024 and sell it today you would earn a total of 91.00 from holding Fuji Electric Co or generate 7.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 4.35% |
| Values | Daily Returns |
Fuji Electric Co vs. Tecogen
Performance |
| Timeline |
| Fuji Electric |
| Tecogen |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Fuji Electric and Tecogen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fuji Electric and Tecogen
The main advantage of trading using opposite Fuji Electric and Tecogen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fuji Electric position performs unexpectedly, Tecogen 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 Tecogen will offset losses from the drop in Tecogen's long position.| Fuji Electric vs. FREYR Battery SA | Fuji Electric vs. nVent Electric PLC | Fuji Electric vs. Hubbell | Fuji Electric vs. Advanced Energy Industries |
| Tecogen vs. Legrand SA ADR | Tecogen vs. AFC Energy plc | Tecogen vs. Loop Energy | Tecogen vs. Sunrise New Energy |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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