Correlation Between Fast Retailing and International Media
Can any of the company-specific risk be diversified away by investing in both Fast Retailing and International Media 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 International Media 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 International Media Acquisition, you can compare the effects of market volatilities on Fast Retailing and International Media 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 International Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fast Retailing and International Media.
Diversification Opportunities for Fast Retailing and International Media
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Fast and International is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Fast Retailing Co and International Media Acquisitio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on International Media 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 International Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of International Media has no effect on the direction of Fast Retailing i.e., Fast Retailing and International Media go up and down completely randomly.
Pair Corralation between Fast Retailing and International Media
If you would invest (100.00) in International Media Acquisition on November 28, 2024 and sell it today you would earn a total of 100.00 from holding International Media Acquisition or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Fast Retailing Co vs. International Media Acquisitio
Performance |
| Timeline |
| Fast Retailing |
| International Media |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Fast Retailing and International Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fast Retailing and International Media
The main advantage of trading using opposite Fast Retailing and International Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fast Retailing position performs unexpectedly, International Media 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 International Media will offset losses from the drop in International Media's long position.| Fast Retailing vs. Industria de Diseno | Fast Retailing vs. Aritzia | Fast Retailing vs. Shoe Carnival | Fast Retailing vs. Genesco |
| International Media vs. Boston Properties | International Media vs. Bassett Furniture Industries | International Media vs. HomeTrust Bancshares | International Media vs. Alexandria Real Estate |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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