Correlation Between FUJIFILM Holdings and Takkt AG
Can any of the company-specific risk be diversified away by investing in both FUJIFILM Holdings and Takkt AG 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 FUJIFILM Holdings and Takkt AG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FUJIFILM Holdings and Takkt AG, you can compare the effects of market volatilities on FUJIFILM Holdings and Takkt AG 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 FUJIFILM Holdings with a short position of Takkt AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of FUJIFILM Holdings and Takkt AG.
Diversification Opportunities for FUJIFILM Holdings and Takkt AG
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between FUJIFILM and Takkt is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding FUJIFILM Holdings and Takkt AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Takkt AG and FUJIFILM Holdings 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 FUJIFILM Holdings are associated (or correlated) with Takkt AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Takkt AG has no effect on the direction of FUJIFILM Holdings i.e., FUJIFILM Holdings and Takkt AG go up and down completely randomly.
Pair Corralation between FUJIFILM Holdings and Takkt AG
Assuming the 90 days horizon FUJIFILM Holdings is expected to generate 1.31 times less return on investment than Takkt AG. But when comparing it to its historical volatility, FUJIFILM Holdings is 1.56 times less risky than Takkt AG. It trades about 0.08 of its potential returns per unit of risk. Takkt AG is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 730.00 in Takkt AG on October 21, 2024 and sell it today you would earn a total of 19.00 from holding Takkt AG or generate 2.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
FUJIFILM Holdings vs. Takkt AG
Performance |
| Timeline |
| FUJIFILM Holdings |
| Takkt AG |
FUJIFILM Holdings and Takkt AG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FUJIFILM Holdings and Takkt AG
The main advantage of trading using opposite FUJIFILM Holdings and Takkt AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FUJIFILM Holdings position performs unexpectedly, Takkt AG 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 Takkt AG will offset losses from the drop in Takkt AG's long position.| FUJIFILM Holdings vs. Canon Inc | FUJIFILM Holdings vs. Panasonic Corp | FUJIFILM Holdings vs. Aeon Co | FUJIFILM Holdings vs. Olympus |
| Takkt AG vs. Telecom Argentina SA | Takkt AG vs. Zoom Video Communications | Takkt AG vs. ARISTOCRAT LEISURE | Takkt AG vs. Singapore Telecommunications Limited |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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