Correlation Between FAST RETAIL and Glaston Oyj
Can any of the company-specific risk be diversified away by investing in both FAST RETAIL and Glaston Oyj 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 RETAIL and Glaston Oyj into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FAST RETAIL ADR and Glaston Oyj Abp, you can compare the effects of market volatilities on FAST RETAIL and Glaston Oyj 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 RETAIL with a short position of Glaston Oyj. Check out your portfolio center. Please also check ongoing floating volatility patterns of FAST RETAIL and Glaston Oyj.
Diversification Opportunities for FAST RETAIL and Glaston Oyj
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between FAST and Glaston is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding FAST RETAIL ADR and Glaston Oyj Abp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Glaston Oyj Abp and FAST RETAIL 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 RETAIL ADR are associated (or correlated) with Glaston Oyj. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Glaston Oyj Abp has no effect on the direction of FAST RETAIL i.e., FAST RETAIL and Glaston Oyj go up and down completely randomly.
Pair Corralation between FAST RETAIL and Glaston Oyj
Assuming the 90 days trading horizon FAST RETAIL ADR is expected to generate 0.82 times more return on investment than Glaston Oyj. However, FAST RETAIL ADR is 1.22 times less risky than Glaston Oyj. It trades about 0.07 of its potential returns per unit of risk. Glaston Oyj Abp is currently generating about 0.0 per unit of risk. If you would invest 1,797 in FAST RETAIL ADR on September 13, 2024 and sell it today you would earn a total of 1,503 from holding FAST RETAIL ADR or generate 83.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
FAST RETAIL ADR vs. Glaston Oyj Abp
Performance |
| Timeline |
| FAST RETAIL ADR |
| Glaston Oyj Abp |
FAST RETAIL and Glaston Oyj Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FAST RETAIL and Glaston Oyj
The main advantage of trading using opposite FAST RETAIL and Glaston Oyj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FAST RETAIL position performs unexpectedly, Glaston Oyj 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 Glaston Oyj will offset losses from the drop in Glaston Oyj's long position.| FAST RETAIL vs. CCC SA | FAST RETAIL vs. AOYAMA TRADING | FAST RETAIL vs. Superior Plus Corp | FAST RETAIL vs. SIVERS SEMICONDUCTORS AB |
| Glaston Oyj vs. Grupo Carso SAB | Glaston Oyj vs. AUTO TRADER ADR | Glaston Oyj vs. Commercial Vehicle Group | Glaston Oyj 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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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