Correlation Between Furukawa Electric and CMUV Bancorp
Can any of the company-specific risk be diversified away by investing in both Furukawa Electric and CMUV Bancorp 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 CMUV Bancorp 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 CMUV Bancorp, you can compare the effects of market volatilities on Furukawa Electric and CMUV Bancorp 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 CMUV Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Furukawa Electric and CMUV Bancorp.
Diversification Opportunities for Furukawa Electric and CMUV Bancorp
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Furukawa and CMUV is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Furukawa Electric Co and CMUV Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CMUV Bancorp 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 CMUV Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CMUV Bancorp has no effect on the direction of Furukawa Electric i.e., Furukawa Electric and CMUV Bancorp go up and down completely randomly.
Pair Corralation between Furukawa Electric and CMUV Bancorp
If you would invest 2,100 in CMUV Bancorp on November 4, 2024 and sell it today you would earn a total of 125.00 from holding CMUV Bancorp or generate 5.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
Furukawa Electric Co vs. CMUV Bancorp
Performance |
| Timeline |
| Furukawa Electric |
| CMUV Bancorp |
Furukawa Electric and CMUV Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Furukawa Electric and CMUV Bancorp
The main advantage of trading using opposite Furukawa Electric and CMUV Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Furukawa Electric position performs unexpectedly, CMUV Bancorp 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 CMUV Bancorp will offset losses from the drop in CMUV Bancorp's long position.| Furukawa Electric vs. FREYR Battery SA | Furukawa Electric vs. nVent Electric PLC | Furukawa Electric vs. Hubbell | Furukawa Electric vs. Advanced Energy Industries |
| CMUV Bancorp vs. Pioneer Bankcorp | CMUV Bancorp vs. Summit Bancshares | CMUV Bancorp vs. Liberty Northwest Bancorp | CMUV Bancorp vs. First Community |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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