Correlation Between FUJIFILM Holdings and Konica Minolta
Can any of the company-specific risk be diversified away by investing in both FUJIFILM Holdings and Konica Minolta 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 FUJIFILM Holdings and Konica Minolta into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FUJIFILM Holdings and Konica Minolta, you can compare the effects of market volatilities on FUJIFILM Holdings and Konica Minolta 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 FUJIFILM Holdings with a short position of Konica Minolta. Check out your portfolio center. Please also check ongoing floating volatility patterns of FUJIFILM Holdings and Konica Minolta.
Diversification Opportunities for FUJIFILM Holdings and Konica Minolta
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between FUJIFILM and Konica is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding FUJIFILM Holdings and Konica Minolta in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Konica Minolta and FUJIFILM Holdings 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 FUJIFILM Holdings are associated (or correlated) with Konica Minolta. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Konica Minolta has no effect on the direction of FUJIFILM Holdings i.e., FUJIFILM Holdings and Konica Minolta go up and down completely randomly.
Pair Corralation between FUJIFILM Holdings and Konica Minolta
Assuming the 90 days horizon FUJIFILM Holdings is expected to generate 1.19 times more return on investment than Konica Minolta. However, FUJIFILM Holdings is 1.19 times more volatile than Konica Minolta. It trades about 0.08 of its potential returns per unit of risk. Konica Minolta is currently generating about -0.33 per unit of risk. If you would invest 1,920 in FUJIFILM Holdings on November 2, 2024 and sell it today you would earn a total of 30.00 from holding FUJIFILM Holdings or generate 1.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
FUJIFILM Holdings vs. Konica Minolta
Performance |
| Timeline |
| FUJIFILM Holdings |
| Konica Minolta |
FUJIFILM Holdings and Konica Minolta Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FUJIFILM Holdings and Konica Minolta
The main advantage of trading using opposite FUJIFILM Holdings and Konica Minolta positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FUJIFILM Holdings position performs unexpectedly, Konica Minolta 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 Konica Minolta will offset losses from the drop in Konica Minolta's long position.| FUJIFILM Holdings vs. Hitachi Ltd ADR | FUJIFILM Holdings vs. Marubeni Corp ADR | FUJIFILM Holdings vs. Compass Diversified Holdings | FUJIFILM Holdings vs. Honeywell International |
| Konica Minolta vs. Ricoh Company | Konica Minolta vs. Kawasaki Heavy Industries | Konica Minolta vs. Kajima Corp ADR | Konica Minolta vs. Nitto Denko Corp |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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