Correlation Between Toshiba and Fosun International
Can any of the company-specific risk be diversified away by investing in both Toshiba and Fosun International 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 Toshiba and Fosun International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Toshiba and Fosun International, you can compare the effects of market volatilities on Toshiba and Fosun International 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 Toshiba with a short position of Fosun International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Toshiba and Fosun International.
Diversification Opportunities for Toshiba and Fosun International
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Toshiba and Fosun is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Toshiba and Fosun International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fosun International and Toshiba 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 Toshiba are associated (or correlated) with Fosun International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fosun International has no effect on the direction of Toshiba i.e., Toshiba and Fosun International go up and down completely randomly.
Pair Corralation between Toshiba and Fosun International
If you would invest 53.00 in Fosun International on September 3, 2024 and sell it today you would earn a total of 1.00 from holding Fosun International or generate 1.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.73% |
| Values | Daily Returns |
Toshiba vs. Fosun International
Performance |
| Timeline |
| Toshiba |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Fosun International |
Toshiba and Fosun International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Toshiba and Fosun International
The main advantage of trading using opposite Toshiba and Fosun International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Toshiba position performs unexpectedly, Fosun International 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 Fosun International will offset losses from the drop in Fosun International's long position.| Toshiba vs. Chester Mining | Toshiba vs. Ambev SA ADR | Toshiba vs. Ispire Technology Common | Toshiba vs. Papaya Growth Opportunity |
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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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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