Correlation Between Yaskawa Electric and Keyence
Can any of the company-specific risk be diversified away by investing in both Yaskawa Electric and Keyence 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 Keyence 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 Keyence, you can compare the effects of market volatilities on Yaskawa Electric and Keyence 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 Keyence. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yaskawa Electric and Keyence.
Diversification Opportunities for Yaskawa Electric and Keyence
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Yaskawa and Keyence is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Yaskawa Electric Corp and Keyence in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Keyence 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 Keyence. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Keyence has no effect on the direction of Yaskawa Electric i.e., Yaskawa Electric and Keyence go up and down completely randomly.
Pair Corralation between Yaskawa Electric and Keyence
Assuming the 90 days horizon Yaskawa Electric Corp is expected to under-perform the Keyence. 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 Keyence. The pink sheet trades about -0.03 of its potential returns per unit of risk. The Keyence is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 42,325 in Keyence on August 25, 2024 and sell it today you would earn a total of 310.00 from holding Keyence or generate 0.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yaskawa Electric Corp vs. Keyence
Performance |
| Timeline |
| Yaskawa Electric Corp |
| Keyence |
Yaskawa Electric and Keyence Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yaskawa Electric and Keyence
The main advantage of trading using opposite Yaskawa Electric and Keyence positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yaskawa Electric position performs unexpectedly, Keyence 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 Keyence will offset losses from the drop in Keyence's long position.| Yaskawa Electric vs. Fanuc | Yaskawa Electric vs. OMRON Corp ADR | Yaskawa Electric vs. Mitsubishi Electric Corp | Yaskawa Electric vs. Keyence |
| Keyence vs. Fortive Corp | Keyence vs. MKS Instruments | Keyence vs. Novanta | Keyence vs. Sensata Technologies Holding |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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