Correlation Between Furukawa Electric and Questerre Energy
Can any of the company-specific risk be diversified away by investing in both Furukawa Electric and Questerre Energy 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 Questerre Energy 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 Questerre Energy, you can compare the effects of market volatilities on Furukawa Electric and Questerre Energy 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 Questerre Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Furukawa Electric and Questerre Energy.
Diversification Opportunities for Furukawa Electric and Questerre Energy
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Furukawa and Questerre is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Furukawa Electric Co and Questerre Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Questerre Energy 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 Questerre Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Questerre Energy has no effect on the direction of Furukawa Electric i.e., Furukawa Electric and Questerre Energy go up and down completely randomly.
Pair Corralation between Furukawa Electric and Questerre Energy
Assuming the 90 days horizon Furukawa Electric Co is expected to generate 0.82 times more return on investment than Questerre Energy. However, Furukawa Electric Co is 1.22 times less risky than Questerre Energy. It trades about 0.11 of its potential returns per unit of risk. Questerre Energy is currently generating about 0.02 per unit of risk. If you would invest 1,563 in Furukawa Electric Co on September 1, 2024 and sell it today you would earn a total of 2,237 from holding Furukawa Electric Co or generate 143.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 57.58% |
| Values | Daily Returns |
Furukawa Electric Co vs. Questerre Energy
Performance |
| Timeline |
| Furukawa Electric |
| Questerre Energy |
Furukawa Electric and Questerre Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Furukawa Electric and Questerre Energy
The main advantage of trading using opposite Furukawa Electric and Questerre Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Furukawa Electric position performs unexpectedly, Questerre Energy 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 Questerre Energy will offset losses from the drop in Questerre Energy'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 |
| Questerre Energy vs. Aminex PLC | Questerre Energy vs. FAR Limited | Questerre Energy vs. PetroShale | Questerre Energy vs. San Leon Energy |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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