Correlation Between Furukawa Electric and Clear Blue
Can any of the company-specific risk be diversified away by investing in both Furukawa Electric and Clear Blue 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 Furukawa Electric and Clear Blue into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Furukawa Electric Co and Clear Blue Technologies, you can compare the effects of market volatilities on Furukawa Electric and Clear Blue 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 Furukawa Electric with a short position of Clear Blue. Check out your portfolio center. Please also check ongoing floating volatility patterns of Furukawa Electric and Clear Blue.
Diversification Opportunities for Furukawa Electric and Clear Blue
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Furukawa and Clear is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Furukawa Electric Co and Clear Blue Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clear Blue Technologies and Furukawa Electric 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 Furukawa Electric Co are associated (or correlated) with Clear Blue. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clear Blue Technologies has no effect on the direction of Furukawa Electric i.e., Furukawa Electric and Clear Blue go up and down completely randomly.
Pair Corralation between Furukawa Electric and Clear Blue
Assuming the 90 days horizon Furukawa Electric Co is expected to generate 0.48 times more return on investment than Clear Blue. However, Furukawa Electric Co is 2.09 times less risky than Clear Blue. It trades about 0.13 of its potential returns per unit of risk. Clear Blue Technologies is currently generating about 0.02 per unit of risk. If you would invest 1,608 in Furukawa Electric Co on August 31, 2024 and sell it today you would earn a total of 2,192 from holding Furukawa Electric Co or generate 136.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 48.26% |
| Values | Daily Returns |
Furukawa Electric Co vs. Clear Blue Technologies
Performance |
| Timeline |
| Furukawa Electric |
| Clear Blue Technologies |
Furukawa Electric and Clear Blue Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Furukawa Electric and Clear Blue
The main advantage of trading using opposite Furukawa Electric and Clear Blue positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Furukawa Electric position performs unexpectedly, Clear Blue 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 Clear Blue will offset losses from the drop in Clear Blue's long position.| Furukawa Electric vs. AFC Energy plc | Furukawa Electric vs. Loop Energy | Furukawa Electric vs. Sunrise New Energy | Furukawa Electric vs. Energizer Holdings |
| Clear Blue vs. Newhydrogen | Clear Blue vs. Ascent Solar Technologies, | Clear Blue vs. SinglePoint | Clear Blue vs. TGI Solar Power |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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