Correlation Between Fuji Media and Talanx AG
Can any of the company-specific risk be diversified away by investing in both Fuji Media and Talanx AG 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 Talanx AG 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 Talanx AG, you can compare the effects of market volatilities on Fuji Media and Talanx AG 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 Talanx AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fuji Media and Talanx AG.
Diversification Opportunities for Fuji Media and Talanx AG
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Fuji and Talanx is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Fuji Media Holdings and Talanx AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Talanx AG 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 Talanx AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Talanx AG has no effect on the direction of Fuji Media i.e., Fuji Media and Talanx AG go up and down completely randomly.
Pair Corralation between Fuji Media and Talanx AG
Assuming the 90 days trading horizon Fuji Media is expected to generate 1.26 times less return on investment than Talanx AG. In addition to that, Fuji Media is 1.62 times more volatile than Talanx AG. It trades about 0.08 of its total potential returns per unit of risk. Talanx AG is currently generating about 0.17 per unit of volatility. If you would invest 7,210 in Talanx AG on October 24, 2024 and sell it today you would earn a total of 1,010 from holding Talanx AG or generate 14.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fuji Media Holdings vs. Talanx AG
Performance |
| Timeline |
| Fuji Media Holdings |
| Talanx AG |
Fuji Media and Talanx AG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fuji Media and Talanx AG
The main advantage of trading using opposite Fuji Media and Talanx AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fuji Media position performs unexpectedly, Talanx AG 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 Talanx AG will offset losses from the drop in Talanx AG's long position.| Fuji Media vs. Scandinavian Tobacco Group | Fuji Media vs. BRIT AMER TOBACCO | Fuji Media vs. Tyson Foods | Fuji Media vs. CITY OFFICE REIT |
| Talanx AG vs. Fuji Media Holdings | Talanx AG vs. PARKEN Sport Entertainment | Talanx AG vs. CVS Health | Talanx AG vs. ATRESMEDIA |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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