Correlation Between Keyence and Yaskawa Electric
Can any of the company-specific risk be diversified away by investing in both Keyence and Yaskawa Electric 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 Keyence and Yaskawa Electric into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Keyence and Yaskawa Electric Corp, you can compare the effects of market volatilities on Keyence and Yaskawa Electric 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 Keyence with a short position of Yaskawa Electric. Check out your portfolio center. Please also check ongoing floating volatility patterns of Keyence and Yaskawa Electric.
Diversification Opportunities for Keyence and Yaskawa Electric
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Keyence and Yaskawa is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Keyence and Yaskawa Electric Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yaskawa Electric Corp and Keyence 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 Keyence are associated (or correlated) with Yaskawa Electric. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yaskawa Electric Corp has no effect on the direction of Keyence i.e., Keyence and Yaskawa Electric go up and down completely randomly.
Pair Corralation between Keyence and Yaskawa Electric
Assuming the 90 days horizon Keyence is expected to generate 1.36 times more return on investment than Yaskawa Electric. However, Keyence is 1.36 times more volatile than Yaskawa Electric Corp. It trades about 0.03 of its potential returns per unit of risk. Yaskawa Electric Corp is currently generating about -0.03 per unit of risk. If you would invest 42,325 in Keyence on August 25, 2024 and sell it today you would earn a total of 310.00 from holding Keyence or generate 0.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Keyence vs. Yaskawa Electric Corp
Performance |
| Timeline |
| Keyence |
| Yaskawa Electric Corp |
Keyence and Yaskawa Electric Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Keyence and Yaskawa Electric
The main advantage of trading using opposite Keyence and Yaskawa Electric positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Keyence position performs unexpectedly, Yaskawa Electric 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 Yaskawa Electric will offset losses from the drop in Yaskawa Electric's long position.| Keyence vs. Fortive Corp | Keyence vs. MKS Instruments | Keyence vs. Novanta | Keyence vs. Sensata Technologies Holding |
| Yaskawa Electric vs. Fanuc | Yaskawa Electric vs. OMRON Corp ADR | Yaskawa Electric vs. Mitsubishi Electric Corp | Yaskawa Electric vs. Keyence |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |