Correlation Between Fukuyama Transporting and Gecina SA
Can any of the company-specific risk be diversified away by investing in both Fukuyama Transporting and Gecina SA 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 Fukuyama Transporting and Gecina SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fukuyama Transporting Co and Gecina SA, you can compare the effects of market volatilities on Fukuyama Transporting and Gecina SA 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 Fukuyama Transporting with a short position of Gecina SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fukuyama Transporting and Gecina SA.
Diversification Opportunities for Fukuyama Transporting and Gecina SA
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Fukuyama and Gecina is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Fukuyama Transporting Co and Gecina SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gecina SA and Fukuyama Transporting 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 Fukuyama Transporting Co are associated (or correlated) with Gecina SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gecina SA has no effect on the direction of Fukuyama Transporting i.e., Fukuyama Transporting and Gecina SA go up and down completely randomly.
Pair Corralation between Fukuyama Transporting and Gecina SA
Assuming the 90 days horizon Fukuyama Transporting Co is expected to generate 2.54 times more return on investment than Gecina SA. However, Fukuyama Transporting is 2.54 times more volatile than Gecina SA. It trades about 0.19 of its potential returns per unit of risk. Gecina SA is currently generating about -0.17 per unit of risk. If you would invest 2,080 in Fukuyama Transporting Co on September 14, 2024 and sell it today you would earn a total of 220.00 from holding Fukuyama Transporting Co or generate 10.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fukuyama Transporting Co vs. Gecina SA
Performance |
| Timeline |
| Fukuyama Transporting |
| Gecina SA |
Fukuyama Transporting and Gecina SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fukuyama Transporting and Gecina SA
The main advantage of trading using opposite Fukuyama Transporting and Gecina SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fukuyama Transporting position performs unexpectedly, Gecina SA 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 Gecina SA will offset losses from the drop in Gecina SA's long position.| Fukuyama Transporting vs. SCHNEIDER NATLINC CLB | Fukuyama Transporting vs. Superior Plus Corp | Fukuyama Transporting vs. SIVERS SEMICONDUCTORS AB | Fukuyama Transporting vs. NorAm Drilling AS |
| Gecina SA vs. Broadcom | Gecina SA vs. Fukuyama Transporting Co | Gecina SA vs. EVS Broadcast Equipment | Gecina SA vs. DISTRICT METALS |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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