Correlation Between Fukuyama Transporting and PGE
Can any of the company-specific risk be diversified away by investing in both Fukuyama Transporting and PGE 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 PGE 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 PGE Corporation, you can compare the effects of market volatilities on Fukuyama Transporting and PGE 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 PGE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fukuyama Transporting and PGE.
Diversification Opportunities for Fukuyama Transporting and PGE
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Fukuyama and PGE is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Fukuyama Transporting Co and PGE Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PGE Corporation 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 PGE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PGE Corporation has no effect on the direction of Fukuyama Transporting i.e., Fukuyama Transporting and PGE go up and down completely randomly.
Pair Corralation between Fukuyama Transporting and PGE
Assuming the 90 days horizon Fukuyama Transporting Co is expected to generate 1.73 times more return on investment than PGE. However, Fukuyama Transporting is 1.73 times more volatile than PGE Corporation. It trades about 0.06 of its potential returns per unit of risk. PGE Corporation is currently generating about 0.05 per unit of risk. If you would invest 1,674 in Fukuyama Transporting Co on September 14, 2024 and sell it today you would earn a total of 626.00 from holding Fukuyama Transporting Co or generate 37.4% 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. PGE Corp.
Performance |
| Timeline |
| Fukuyama Transporting |
| PGE Corporation |
Fukuyama Transporting and PGE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fukuyama Transporting and PGE
The main advantage of trading using opposite Fukuyama Transporting and PGE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fukuyama Transporting position performs unexpectedly, PGE 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 PGE will offset losses from the drop in PGE'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 |
| PGE vs. Fukuyama Transporting Co | PGE vs. Methode Electronics | PGE vs. Electronic Arts | PGE vs. Benchmark Electronics |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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