Correlation Between Fuji Media and FARM 51
Can any of the company-specific risk be diversified away by investing in both Fuji Media and FARM 51 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 Fuji Media and FARM 51 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fuji Media Holdings and FARM 51 GROUP, you can compare the effects of market volatilities on Fuji Media and FARM 51 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 Fuji Media with a short position of FARM 51. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fuji Media and FARM 51.
Diversification Opportunities for Fuji Media and FARM 51
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Fuji and FARM is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Fuji Media Holdings and FARM 51 GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FARM 51 GROUP and Fuji Media 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 Fuji Media Holdings are associated (or correlated) with FARM 51. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FARM 51 GROUP has no effect on the direction of Fuji Media i.e., Fuji Media and FARM 51 go up and down completely randomly.
Pair Corralation between Fuji Media and FARM 51
Assuming the 90 days trading horizon Fuji Media Holdings is expected to generate 0.61 times more return on investment than FARM 51. However, Fuji Media Holdings is 1.65 times less risky than FARM 51. It trades about 0.04 of its potential returns per unit of risk. FARM 51 GROUP is currently generating about -0.04 per unit of risk. If you would invest 720.00 in Fuji Media Holdings on October 14, 2024 and sell it today you would earn a total of 260.00 from holding Fuji Media Holdings or generate 36.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fuji Media Holdings vs. FARM 51 GROUP
Performance |
| Timeline |
| Fuji Media Holdings |
| FARM 51 GROUP |
Fuji Media and FARM 51 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fuji Media and FARM 51
The main advantage of trading using opposite Fuji Media and FARM 51 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fuji Media position performs unexpectedly, FARM 51 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 FARM 51 will offset losses from the drop in FARM 51's long position.| Fuji Media vs. Corporate Office Properties | Fuji Media vs. NAKED WINES PLC | Fuji Media vs. KENEDIX OFFICE INV | Fuji Media vs. NURAN WIRELESS INC |
| FARM 51 vs. Merit Medical Systems | FARM 51 vs. PEPTONIC MEDICAL | FARM 51 vs. Inspire Medical Systems | FARM 51 vs. Fevertree Drinks PLC |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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