Correlation Between Hitachi Metals and Fleetcor Technologies
Can any of the company-specific risk be diversified away by investing in both Hitachi Metals and Fleetcor Technologies 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 Hitachi Metals and Fleetcor Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hitachi Metals and Fleetcor Technologies, you can compare the effects of market volatilities on Hitachi Metals and Fleetcor Technologies 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 Hitachi Metals with a short position of Fleetcor Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hitachi Metals and Fleetcor Technologies.
Diversification Opportunities for Hitachi Metals and Fleetcor Technologies
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Hitachi and Fleetcor is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Hitachi Metals and Fleetcor Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fleetcor Technologies and Hitachi Metals 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 Hitachi Metals are associated (or correlated) with Fleetcor Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fleetcor Technologies has no effect on the direction of Hitachi Metals i.e., Hitachi Metals and Fleetcor Technologies go up and down completely randomly.
Pair Corralation between Hitachi Metals and Fleetcor Technologies
If you would invest 100,000,000 in Hitachi Metals on August 27, 2024 and sell it today you would earn a total of 0.00 from holding Hitachi Metals or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 1.61% |
| Values | Daily Returns |
Hitachi Metals vs. Fleetcor Technologies
Performance |
| Timeline |
| Hitachi Metals |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Fleetcor Technologies |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Hitachi Metals and Fleetcor Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hitachi Metals and Fleetcor Technologies
The main advantage of trading using opposite Hitachi Metals and Fleetcor Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hitachi Metals position performs unexpectedly, Fleetcor Technologies 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 Fleetcor Technologies will offset losses from the drop in Fleetcor Technologies' long position.| Hitachi Metals vs. Kite Realty Group | Hitachi Metals vs. Contagious Gaming | Hitachi Metals vs. The Gap, | Hitachi Metals vs. Coupang LLC |
| Fleetcor Technologies vs. Emerson Electric | Fleetcor Technologies vs. Marfrig Global Foods | Fleetcor Technologies vs. Topbuild Corp | Fleetcor Technologies vs. FitLife Brands, Common |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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