Correlation Between Furukawa Electric and Osino Resources
Can any of the company-specific risk be diversified away by investing in both Furukawa Electric and Osino Resources 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 Osino Resources 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 Osino Resources Corp, you can compare the effects of market volatilities on Furukawa Electric and Osino Resources 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 Osino Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Furukawa Electric and Osino Resources.
Diversification Opportunities for Furukawa Electric and Osino Resources
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Furukawa and Osino is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Furukawa Electric Co and Osino Resources Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Osino Resources Corp 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 Osino Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Osino Resources Corp has no effect on the direction of Furukawa Electric i.e., Furukawa Electric and Osino Resources go up and down completely randomly.
Pair Corralation between Furukawa Electric and Osino Resources
Assuming the 90 days horizon Furukawa Electric Co is expected to generate 1.38 times more return on investment than Osino Resources. However, Furukawa Electric is 1.38 times more volatile than Osino Resources Corp. It trades about 0.17 of its potential returns per unit of risk. Osino Resources Corp is currently generating about 0.13 per unit of risk. If you would invest 1,455 in Furukawa Electric Co on September 1, 2024 and sell it today you would earn a total of 2,345 from holding Furukawa Electric Co or generate 161.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 70.67% |
| Values | Daily Returns |
Furukawa Electric Co vs. Osino Resources Corp
Performance |
| Timeline |
| Furukawa Electric |
| Osino Resources Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Furukawa Electric and Osino Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Furukawa Electric and Osino Resources
The main advantage of trading using opposite Furukawa Electric and Osino Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Furukawa Electric position performs unexpectedly, Osino Resources 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 Osino Resources will offset losses from the drop in Osino Resources' long position.| Furukawa Electric vs. AFC Energy plc | Furukawa Electric vs. Loop Energy | Furukawa Electric vs. Sunrise New Energy | Furukawa Electric vs. Energizer Holdings |
| Osino Resources vs. Minera Alamos | Osino Resources vs. Aurion Resources | Osino Resources vs. Minaurum Gold | Osino Resources vs. Rio2 Limited |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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