Correlation Between Hitachi and Keikyu
Can any of the company-specific risk be diversified away by investing in both Hitachi and Keikyu 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 and Keikyu into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hitachi and Keikyu, you can compare the effects of market volatilities on Hitachi and Keikyu 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 with a short position of Keikyu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hitachi and Keikyu.
Diversification Opportunities for Hitachi and Keikyu
Pay attention - limited upside
The 3 months correlation between Hitachi and Keikyu is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Hitachi and Keikyu in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Keikyu and Hitachi 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 are associated (or correlated) with Keikyu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Keikyu has no effect on the direction of Hitachi i.e., Hitachi and Keikyu go up and down completely randomly.
Pair Corralation between Hitachi and Keikyu
If you would invest 2,158 in Hitachi on September 1, 2024 and sell it today you would earn a total of 410.00 from holding Hitachi or generate 19.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 64.29% |
| Values | Daily Returns |
Hitachi vs. Keikyu
Performance |
| Timeline |
| Hitachi |
| Keikyu |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Hitachi and Keikyu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hitachi and Keikyu
The main advantage of trading using opposite Hitachi and Keikyu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hitachi position performs unexpectedly, Keikyu 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 Keikyu will offset losses from the drop in Keikyu's long position.The idea behind Hitachi and Keikyu pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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