Correlation Between Fast Retailing and 02378MAA9

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Fast Retailing and 02378MAA9 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 02378MAA9 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 AAL 35 15 FEB 32, you can compare the effects of market volatilities on Fast Retailing and 02378MAA9 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 02378MAA9. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fast Retailing and 02378MAA9.

Diversification Opportunities for Fast Retailing and 02378MAA9

0.13
  Correlation Coefficient

Average diversification

The 3 months correlation between Fast and 02378MAA9 is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Fast Retailing Co and AAL 35 15 FEB 32 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AAL 35 15 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 02378MAA9. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AAL 35 15 has no effect on the direction of Fast Retailing i.e., Fast Retailing and 02378MAA9 go up and down completely randomly.

Pair Corralation between Fast Retailing and 02378MAA9

Assuming the 90 days horizon Fast Retailing Co is expected to generate 0.19 times more return on investment than 02378MAA9. However, Fast Retailing Co is 5.18 times less risky than 02378MAA9. It trades about 0.05 of its potential returns per unit of risk. AAL 35 15 FEB 32 is currently generating about -0.41 per unit of risk. If you would invest  33,100  in Fast Retailing Co on September 4, 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 Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy23.81%
ValuesDaily Returns

Fast Retailing Co  vs.  AAL 35 15 FEB 32

 Performance 
       Timeline  
Fast Retailing 

Risk-Adjusted Performance

5 of 100

 
Weak
 
Strong
Modest
Compared to the overall equity markets, risk-adjusted returns on investments in Fast Retailing Co are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, Fast Retailing reported solid returns over the last few months and may actually be approaching a breakup point.
AAL 35 15 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days AAL 35 15 FEB 32 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Bond's basic indicators remain somewhat strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for AAL 35 15 FEB 32 investors.

Fast Retailing and 02378MAA9 Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Fast Retailing and 02378MAA9

The main advantage of trading using opposite Fast Retailing and 02378MAA9 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fast Retailing position performs unexpectedly, 02378MAA9 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 02378MAA9 will offset losses from the drop in 02378MAA9's long position.
Fast Retailing vs. Industria de Diseno
Fast Retailing vs. Aritzia
Fast Retailing vs. Shoe Carnival
Fast Retailing vs. Genesco
The idea behind Fast Retailing Co and AAL 35 15 FEB 32 pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
02378MAA9 vs. Fast Retailing Co
02378MAA9 vs. Tradeweb Markets
02378MAA9 vs. Apogee Therapeutics, Common
02378MAA9 vs. Lululemon Athletica
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.

Other Complementary Tools

Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites
Companies Directory
Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals
Crypto Correlations
Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins
Idea Optimizer
Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio
Idea Analyzer
Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas


 
Macroaxis helps investors of all levels and skills to maximize the upside of all their holdings and minimize the risk associated with market volatility, economic swings, and company-specific events. View terms and conditions
 
Feedback Blog
Made with optimal in San Francisco
2024 Macroaxis LLC
COMMON DESTINATIONS
MAIN CATEGORIES
COMPANY