Correlation Between Fukuyama Transporting and Cogent Communications
Can any of the company-specific risk be diversified away by investing in both Fukuyama Transporting and Cogent Communications 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 Cogent Communications 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 Cogent Communications Holdings, you can compare the effects of market volatilities on Fukuyama Transporting and Cogent Communications 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 Cogent Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fukuyama Transporting and Cogent Communications.
Diversification Opportunities for Fukuyama Transporting and Cogent Communications
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Fukuyama and Cogent is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Fukuyama Transporting Co and Cogent Communications Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cogent Communications 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 Cogent Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cogent Communications has no effect on the direction of Fukuyama Transporting i.e., Fukuyama Transporting and Cogent Communications go up and down completely randomly.
Pair Corralation between Fukuyama Transporting and Cogent Communications
Assuming the 90 days horizon Fukuyama Transporting is expected to generate 1.16 times less return on investment than Cogent Communications. But when comparing it to its historical volatility, Fukuyama Transporting Co is 1.01 times less risky than Cogent Communications. It trades about 0.05 of its potential returns per unit of risk. Cogent Communications Holdings is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 5,331 in Cogent Communications Holdings on September 2, 2024 and sell it today you would earn a total of 2,369 from holding Cogent Communications Holdings or generate 44.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fukuyama Transporting Co vs. Cogent Communications Holdings
Performance |
| Timeline |
| Fukuyama Transporting |
| Cogent Communications |
Fukuyama Transporting and Cogent Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fukuyama Transporting and Cogent Communications
The main advantage of trading using opposite Fukuyama Transporting and Cogent Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fukuyama Transporting position performs unexpectedly, Cogent Communications 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 Cogent Communications will offset losses from the drop in Cogent Communications' long position.| Fukuyama Transporting vs. Werner Enterprises | Fukuyama Transporting vs. Seino Holdings Co | Fukuyama Transporting vs. Superior Plus Corp | Fukuyama Transporting vs. NMI Holdings |
| Cogent Communications vs. Calibre Mining Corp | Cogent Communications vs. FUYO GENERAL LEASE | Cogent Communications vs. MINCO SILVER | Cogent Communications vs. Apollo Investment Corp |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Transaction History View history of all your transactions and understand their impact on performance |