Correlation Between Fast Retailing and GRUPO CARSO
Can any of the company-specific risk be diversified away by investing in both Fast Retailing and GRUPO CARSO 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 Fast Retailing and GRUPO CARSO into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fast Retailing Co and GRUPO CARSO A1, you can compare the effects of market volatilities on Fast Retailing and GRUPO CARSO 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 Fast Retailing with a short position of GRUPO CARSO. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fast Retailing and GRUPO CARSO.
Diversification Opportunities for Fast Retailing and GRUPO CARSO
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Fast and GRUPO is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Fast Retailing Co and GRUPO CARSO A1 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GRUPO CARSO A1 and Fast Retailing 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 Fast Retailing Co are associated (or correlated) with GRUPO CARSO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GRUPO CARSO A1 has no effect on the direction of Fast Retailing i.e., Fast Retailing and GRUPO CARSO go up and down completely randomly.
Pair Corralation between Fast Retailing and GRUPO CARSO
Assuming the 90 days trading horizon Fast Retailing Co is expected to generate 0.34 times more return on investment than GRUPO CARSO. However, Fast Retailing Co is 2.98 times less risky than GRUPO CARSO. It trades about 0.1 of its potential returns per unit of risk. GRUPO CARSO A1 is currently generating about 0.03 per unit of risk. If you would invest 22,000 in Fast Retailing Co on September 12, 2024 and sell it today you would earn a total of 11,610 from holding Fast Retailing Co or generate 52.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fast Retailing Co vs. GRUPO CARSO A1
Performance |
| Timeline |
| Fast Retailing |
| GRUPO CARSO A1 |
Fast Retailing and GRUPO CARSO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fast Retailing and GRUPO CARSO
The main advantage of trading using opposite Fast Retailing and GRUPO CARSO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fast Retailing position performs unexpectedly, GRUPO CARSO 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 GRUPO CARSO will offset losses from the drop in GRUPO CARSO's long position.| Fast Retailing vs. GRUPO CARSO A1 | Fast Retailing vs. EAST SIDE GAMES | Fast Retailing vs. Games Workshop Group | Fast Retailing vs. Geely Automobile Holdings |
| GRUPO CARSO vs. Apple Inc | GRUPO CARSO vs. Apple Inc | GRUPO CARSO vs. Apple Inc | GRUPO CARSO vs. Apple Inc |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |