Correlation Between GAMESTOP and Fast Retailing
Can any of the company-specific risk be diversified away by investing in both GAMESTOP and Fast Retailing 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 GAMESTOP and Fast Retailing into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GAMESTOP and Fast Retailing Co, you can compare the effects of market volatilities on GAMESTOP and Fast Retailing 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 GAMESTOP with a short position of Fast Retailing. Check out your portfolio center. Please also check ongoing floating volatility patterns of GAMESTOP and Fast Retailing.
Diversification Opportunities for GAMESTOP and Fast Retailing
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between GAMESTOP and Fast is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding GAMESTOP and Fast Retailing Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fast Retailing and GAMESTOP 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 GAMESTOP are associated (or correlated) with Fast Retailing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fast Retailing has no effect on the direction of GAMESTOP i.e., GAMESTOP and Fast Retailing go up and down completely randomly.
Pair Corralation between GAMESTOP and Fast Retailing
Assuming the 90 days trading horizon GAMESTOP is expected to generate 1.84 times more return on investment than Fast Retailing. However, GAMESTOP is 1.84 times more volatile than Fast Retailing Co. It trades about 0.43 of its potential returns per unit of risk. Fast Retailing Co is currently generating about 0.13 per unit of risk. If you would invest 2,099 in GAMESTOP on August 30, 2024 and sell it today you would earn a total of 838.00 from holding GAMESTOP or generate 39.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GAMESTOP vs. Fast Retailing Co
Performance |
| Timeline |
| GAMESTOP |
| Fast Retailing |
GAMESTOP and Fast Retailing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GAMESTOP and Fast Retailing
The main advantage of trading using opposite GAMESTOP and Fast Retailing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GAMESTOP position performs unexpectedly, Fast Retailing 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 Fast Retailing will offset losses from the drop in Fast Retailing's long position.| GAMESTOP vs. Apple Inc | GAMESTOP vs. Apple Inc | GAMESTOP vs. Superior Plus Corp | GAMESTOP vs. SIVERS SEMICONDUCTORS AB |
| Fast Retailing vs. Apple Inc | Fast Retailing vs. Apple Inc | Fast Retailing vs. Superior Plus Corp | Fast Retailing vs. SIVERS SEMICONDUCTORS AB |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |