Correlation Between Yaskawa Electric and Fuji Electric
Can any of the company-specific risk be diversified away by investing in both Yaskawa Electric and Fuji 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 Yaskawa Electric and Fuji Electric into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Yaskawa Electric Corp and Fuji Electric Co, you can compare the effects of market volatilities on Yaskawa Electric and Fuji 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 Yaskawa Electric with a short position of Fuji Electric. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yaskawa Electric and Fuji Electric.
Diversification Opportunities for Yaskawa Electric and Fuji Electric
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Yaskawa and Fuji is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Yaskawa Electric Corp and Fuji Electric Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fuji Electric and Yaskawa Electric 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 Yaskawa Electric Corp are associated (or correlated) with Fuji Electric. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fuji Electric has no effect on the direction of Yaskawa Electric i.e., Yaskawa Electric and Fuji Electric go up and down completely randomly.
Pair Corralation between Yaskawa Electric and Fuji Electric
Assuming the 90 days horizon Yaskawa Electric Corp is expected to under-perform the Fuji Electric. But the pink sheet apears to be less risky and, when comparing its historical volatility, Yaskawa Electric Corp is 1.36 times less risky than Fuji Electric. The pink sheet trades about -0.12 of its potential returns per unit of risk. The Fuji Electric Co is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 1,484 in Fuji Electric Co on August 28, 2024 and sell it today you would lose (74.00) from holding Fuji Electric Co or give up 4.99% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yaskawa Electric Corp vs. Fuji Electric Co
Performance |
| Timeline |
| Yaskawa Electric Corp |
| Fuji Electric |
Yaskawa Electric and Fuji Electric Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yaskawa Electric and Fuji Electric
The main advantage of trading using opposite Yaskawa Electric and Fuji Electric positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yaskawa Electric position performs unexpectedly, Fuji 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 Fuji Electric will offset losses from the drop in Fuji Electric's long position.| Yaskawa Electric vs. FREYR Battery SA | Yaskawa Electric vs. nVent Electric PLC | Yaskawa Electric vs. Hubbell | Yaskawa Electric vs. Advanced Energy Industries |
| Fuji Electric vs. FREYR Battery SA | Fuji Electric vs. nVent Electric PLC | Fuji Electric vs. Hubbell | Fuji 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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