Correlation Between Fukuyama Transporting and Marubeni
Can any of the company-specific risk be diversified away by investing in both Fukuyama Transporting and Marubeni 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 Marubeni 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 Marubeni, you can compare the effects of market volatilities on Fukuyama Transporting and Marubeni 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 Marubeni. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fukuyama Transporting and Marubeni.
Diversification Opportunities for Fukuyama Transporting and Marubeni
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Fukuyama and Marubeni is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Fukuyama Transporting Co and Marubeni in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marubeni 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 Marubeni. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marubeni has no effect on the direction of Fukuyama Transporting i.e., Fukuyama Transporting and Marubeni go up and down completely randomly.
Pair Corralation between Fukuyama Transporting and Marubeni
Assuming the 90 days horizon Fukuyama Transporting Co is expected to generate 0.95 times more return on investment than Marubeni. However, Fukuyama Transporting Co is 1.05 times less risky than Marubeni. It trades about 0.04 of its potential returns per unit of risk. Marubeni is currently generating about 0.03 per unit of risk. If you would invest 1,751 in Fukuyama Transporting Co on September 3, 2024 and sell it today you would earn a total of 589.00 from holding Fukuyama Transporting Co or generate 33.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fukuyama Transporting Co vs. Marubeni
Performance |
| Timeline |
| Fukuyama Transporting |
| Marubeni |
Fukuyama Transporting and Marubeni Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fukuyama Transporting and Marubeni
The main advantage of trading using opposite Fukuyama Transporting and Marubeni positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fukuyama Transporting position performs unexpectedly, Marubeni 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 Marubeni will offset losses from the drop in Marubeni's long position.| Fukuyama Transporting vs. Direct Line Insurance | Fukuyama Transporting vs. T MOBILE INCDL 00001 | Fukuyama Transporting vs. REVO INSURANCE SPA | Fukuyama Transporting vs. COMBA TELECOM SYST |
| Marubeni vs. TITANIUM TRANSPORTGROUP | Marubeni vs. QUEEN S ROAD | Marubeni vs. Fukuyama Transporting Co | Marubeni vs. BII Railway Transportation |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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