Correlation Between Yoshitsu and FGI Industries
Can any of the company-specific risk be diversified away by investing in both Yoshitsu and FGI Industries 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 Yoshitsu and FGI Industries into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Yoshitsu Co Ltd and FGI Industries, you can compare the effects of market volatilities on Yoshitsu and FGI Industries 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 Yoshitsu with a short position of FGI Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yoshitsu and FGI Industries.
Diversification Opportunities for Yoshitsu and FGI Industries
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Yoshitsu and FGI is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Yoshitsu Co Ltd and FGI Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FGI Industries and Yoshitsu 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 Yoshitsu Co Ltd are associated (or correlated) with FGI Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FGI Industries has no effect on the direction of Yoshitsu i.e., Yoshitsu and FGI Industries go up and down completely randomly.
Pair Corralation between Yoshitsu and FGI Industries
Given the investment horizon of 90 days Yoshitsu Co Ltd is expected to under-perform the FGI Industries. In addition to that, Yoshitsu is 1.34 times more volatile than FGI Industries. It trades about -0.15 of its total potential returns per unit of risk. FGI Industries is currently generating about -0.01 per unit of volatility. If you would invest 88.00 in FGI Industries on August 24, 2024 and sell it today you would lose (6.60) from holding FGI Industries or give up 7.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yoshitsu Co Ltd vs. FGI Industries
Performance |
| Timeline |
| Yoshitsu |
| FGI Industries |
Yoshitsu and FGI Industries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yoshitsu and FGI Industries
The main advantage of trading using opposite Yoshitsu and FGI Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yoshitsu position performs unexpectedly, FGI Industries 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 FGI Industries will offset losses from the drop in FGI Industries' long position.| Yoshitsu vs. Inter Parfums | Yoshitsu vs. European Wax Center | Yoshitsu vs. Yatsen Holding | Yoshitsu vs. Edgewell Personal Care |
| FGI Industries vs. Virco Manufacturing | FGI Industries vs. Energy Focu | FGI Industries vs. Hamilton Beach Brands | FGI Industries vs. Natuzzi SpA |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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