Correlation Between Fast Retailing and Concentra Group
Can any of the company-specific risk be diversified away by investing in both Fast Retailing and Concentra Group 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 Concentra Group 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 Concentra Group Holdings, you can compare the effects of market volatilities on Fast Retailing and Concentra Group 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 Concentra Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fast Retailing and Concentra Group.
Diversification Opportunities for Fast Retailing and Concentra Group
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Fast and Concentra is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Fast Retailing Co and Concentra Group Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Concentra Group Holdings 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 Concentra Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Concentra Group Holdings has no effect on the direction of Fast Retailing i.e., Fast Retailing and Concentra Group go up and down completely randomly.
Pair Corralation between Fast Retailing and Concentra Group
Assuming the 90 days horizon Fast Retailing Co is expected to generate 0.74 times more return on investment than Concentra Group. However, Fast Retailing Co is 1.36 times less risky than Concentra Group. It trades about 0.05 of its potential returns per unit of risk. Concentra Group Holdings is currently generating about -0.03 per unit of risk. If you would invest 33,100 in Fast Retailing Co on September 14, 2024 and sell it today you would earn a total of 490.00 from holding Fast Retailing Co or generate 1.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fast Retailing Co vs. Concentra Group Holdings
Performance |
| Timeline |
| Fast Retailing |
| Concentra Group Holdings |
Fast Retailing and Concentra Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fast Retailing and Concentra Group
The main advantage of trading using opposite Fast Retailing and Concentra Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fast Retailing position performs unexpectedly, Concentra Group 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 Concentra Group will offset losses from the drop in Concentra Group's long position.| Fast Retailing vs. Industria de Diseno | Fast Retailing vs. Aritzia | Fast Retailing vs. Shoe Carnival | Fast Retailing vs. Genesco |
| Concentra Group vs. Datadog | Concentra Group vs. Chester Mining | Concentra Group vs. Insteel Industries | Concentra Group vs. Tencent Music Entertainment |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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