Correlation Between POLAR POWER and Fast Retailing
Can any of the company-specific risk be diversified away by investing in both POLAR POWER 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 POLAR POWER and Fast Retailing into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between POLAR POWER INC and Fast Retailing Co, you can compare the effects of market volatilities on POLAR POWER 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 POLAR POWER with a short position of Fast Retailing. Check out your portfolio center. Please also check ongoing floating volatility patterns of POLAR POWER and Fast Retailing.
Diversification Opportunities for POLAR POWER and Fast Retailing
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between POLAR and Fast is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding POLAR POWER INC and Fast Retailing Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fast Retailing and POLAR POWER 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 POLAR POWER INC 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 POLAR POWER i.e., POLAR POWER and Fast Retailing go up and down completely randomly.
Pair Corralation between POLAR POWER and Fast Retailing
If you would invest 31,200 in Fast Retailing Co on September 24, 2024 and sell it today you would earn a total of 940.00 from holding Fast Retailing Co or generate 3.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
POLAR POWER INC vs. Fast Retailing Co
Performance |
| Timeline |
| POLAR POWER INC |
| Fast Retailing |
POLAR POWER and Fast Retailing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with POLAR POWER and Fast Retailing
The main advantage of trading using opposite POLAR POWER and Fast Retailing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if POLAR POWER 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.| POLAR POWER vs. Fast Retailing Co | POLAR POWER vs. Chunghwa Telecom Co | POLAR POWER vs. FLOW TRADERS LTD | POLAR POWER vs. CITIC Telecom International |
| Fast Retailing vs. VIENNA INSURANCE GR | Fast Retailing vs. Selective Insurance Group | Fast Retailing vs. Insurance Australia Group | Fast Retailing vs. Reinsurance Group of |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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