Correlation Between FUJITSU and CDW
Can any of the company-specific risk be diversified away by investing in both FUJITSU and CDW 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 FUJITSU and CDW into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FUJITSU LTD ADR and CDW Corporation, you can compare the effects of market volatilities on FUJITSU and CDW 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 FUJITSU with a short position of CDW. Check out your portfolio center. Please also check ongoing floating volatility patterns of FUJITSU and CDW.
Diversification Opportunities for FUJITSU and CDW
Very weak diversification
The 3 months correlation between FUJITSU and CDW is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding FUJITSU LTD ADR and CDW Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CDW Corporation and FUJITSU 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 FUJITSU LTD ADR are associated (or correlated) with CDW. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CDW Corporation has no effect on the direction of FUJITSU i.e., FUJITSU and CDW go up and down completely randomly.
Pair Corralation between FUJITSU and CDW
Assuming the 90 days trading horizon FUJITSU LTD ADR is expected to under-perform the CDW. In addition to that, FUJITSU is 1.15 times more volatile than CDW Corporation. It trades about -0.02 of its total potential returns per unit of risk. CDW Corporation is currently generating about 0.2 per unit of volatility. If you would invest 17,175 in CDW Corporation on October 26, 2024 and sell it today you would earn a total of 1,735 from holding CDW Corporation or generate 10.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
FUJITSU LTD ADR vs. CDW Corp.
Performance |
| Timeline |
| FUJITSU LTD ADR |
| CDW Corporation |
FUJITSU and CDW Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FUJITSU and CDW
The main advantage of trading using opposite FUJITSU and CDW positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FUJITSU position performs unexpectedly, CDW 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 CDW will offset losses from the drop in CDW's long position.| FUJITSU vs. American Public Education | FUJITSU vs. PTT Global Chemical | FUJITSU vs. Siamgas And Petrochemicals | FUJITSU vs. Mitsubishi Gas Chemical |
| CDW vs. SILICON LABORATOR | CDW vs. JAPAN TOBACCO UNSPADR12 | CDW vs. GRUPO CARSO A1 | CDW vs. TIANDE CHEMICAL |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |