Correlation Between Tecogen and Yaskawa Electric
Can any of the company-specific risk be diversified away by investing in both Tecogen 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 Tecogen and Yaskawa Electric into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tecogen and Yaskawa Electric Corp, you can compare the effects of market volatilities on Tecogen 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 Tecogen with a short position of Yaskawa Electric. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tecogen and Yaskawa Electric.
Diversification Opportunities for Tecogen and Yaskawa Electric
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Tecogen and Yaskawa is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Tecogen 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 Tecogen 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 Tecogen 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 Tecogen i.e., Tecogen and Yaskawa Electric go up and down completely randomly.
Pair Corralation between Tecogen and Yaskawa Electric
Given the investment horizon of 90 days Tecogen is expected to generate 2.79 times more return on investment than Yaskawa Electric. However, Tecogen is 2.79 times more volatile than Yaskawa Electric Corp. It trades about 0.0 of its potential returns per unit of risk. Yaskawa Electric Corp is currently generating about -0.01 per unit of risk. If you would invest 141.00 in Tecogen on August 28, 2024 and sell it today you would lose (34.00) from holding Tecogen or give up 24.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 31.65% |
| Values | Daily Returns |
Tecogen vs. Yaskawa Electric Corp
Performance |
| Timeline |
| Tecogen |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Yaskawa Electric Corp |
Tecogen and Yaskawa Electric Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tecogen and Yaskawa Electric
The main advantage of trading using opposite Tecogen and Yaskawa Electric positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tecogen 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.| Tecogen vs. Legrand SA ADR | Tecogen vs. AFC Energy plc | Tecogen vs. Loop Energy | Tecogen vs. Sunrise New Energy |
| Yaskawa Electric vs. FREYR Battery SA | Yaskawa Electric vs. nVent Electric PLC | Yaskawa Electric vs. Hubbell | Yaskawa Electric vs. Advanced Energy Industries |
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 Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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