Correlation Between Fukuoka Financial and Rock Tech
Can any of the company-specific risk be diversified away by investing in both Fukuoka Financial and Rock Tech 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 Fukuoka Financial and Rock Tech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fukuoka Financial Group and Rock Tech Lithium, you can compare the effects of market volatilities on Fukuoka Financial and Rock Tech 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 Fukuoka Financial with a short position of Rock Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fukuoka Financial and Rock Tech.
Diversification Opportunities for Fukuoka Financial and Rock Tech
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Fukuoka and Rock is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Fukuoka Financial Group and Rock Tech Lithium in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rock Tech Lithium and Fukuoka Financial 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 Fukuoka Financial Group are associated (or correlated) with Rock Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rock Tech Lithium has no effect on the direction of Fukuoka Financial i.e., Fukuoka Financial and Rock Tech go up and down completely randomly.
Pair Corralation between Fukuoka Financial and Rock Tech
Assuming the 90 days horizon Fukuoka Financial Group is expected to under-perform the Rock Tech. But the stock apears to be less risky and, when comparing its historical volatility, Fukuoka Financial Group is 5.35 times less risky than Rock Tech. The stock trades about -0.1 of its potential returns per unit of risk. The Rock Tech Lithium is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 71.00 in Rock Tech Lithium on December 5, 2024 and sell it today you would lose (3.00) from holding Rock Tech Lithium or give up 4.23% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 98.33% |
Values | Daily Returns |
Fukuoka Financial Group vs. Rock Tech Lithium
Performance |
Timeline |
Fukuoka Financial |
Rock Tech Lithium |
Fukuoka Financial and Rock Tech Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Fukuoka Financial and Rock Tech
The main advantage of trading using opposite Fukuoka Financial and Rock Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fukuoka Financial position performs unexpectedly, Rock Tech 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 Rock Tech will offset losses from the drop in Rock Tech's long position.Fukuoka Financial vs. Boyd Gaming | Fukuoka Financial vs. BAKED GAMES SA | Fukuoka Financial vs. OURGAME INTHOLDL 00005 | Fukuoka Financial vs. GigaMedia |
Rock Tech vs. STMicroelectronics NV | Rock Tech vs. Direct Line Insurance | Rock Tech vs. Sabre Insurance Group | Rock Tech vs. STMICROELECTRONICS |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |