Correlation Between Fast Retailing and SOUTHERN
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By analyzing existing cross correlation between Fast Retailing Co and SOUTHERN CALIF EDISON, you can compare the effects of market volatilities on Fast Retailing and SOUTHERN 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 SOUTHERN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fast Retailing and SOUTHERN.
Diversification Opportunities for Fast Retailing and SOUTHERN
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Fast and SOUTHERN is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Fast Retailing Co and SOUTHERN CALIF EDISON in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SOUTHERN CALIF EDISON 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 SOUTHERN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SOUTHERN CALIF EDISON has no effect on the direction of Fast Retailing i.e., Fast Retailing and SOUTHERN go up and down completely randomly.
Pair Corralation between Fast Retailing and SOUTHERN
Assuming the 90 days horizon Fast Retailing Co is expected to generate 2.47 times more return on investment than SOUTHERN. However, Fast Retailing is 2.47 times more volatile than SOUTHERN CALIF EDISON. It trades about 0.06 of its potential returns per unit of risk. SOUTHERN CALIF EDISON is currently generating about -0.01 per unit of risk. If you would invest 24,795 in Fast Retailing Co on September 3, 2024 and sell it today you would earn a total of 7,270 from holding Fast Retailing Co or generate 29.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 86.06% |
| Values | Daily Returns |
Fast Retailing Co vs. SOUTHERN CALIF EDISON
Performance |
| Timeline |
| Fast Retailing |
| SOUTHERN CALIF EDISON |
Fast Retailing and SOUTHERN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fast Retailing and SOUTHERN
The main advantage of trading using opposite Fast Retailing and SOUTHERN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fast Retailing position performs unexpectedly, SOUTHERN 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 SOUTHERN will offset losses from the drop in SOUTHERN's long position.| Fast Retailing vs. Industria de Diseno | Fast Retailing vs. Aritzia | Fast Retailing vs. Shoe Carnival | Fast Retailing vs. Genesco |
| SOUTHERN vs. The Gap, | SOUTHERN vs. Fast Retailing Co | SOUTHERN vs. Grupo Televisa SAB | SOUTHERN vs. Iridium Communications |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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