Correlation Between Fundamental Global and Yoshitsu

Can any of the company-specific risk be diversified away by investing in both Fundamental Global and Yoshitsu 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 Fundamental Global and Yoshitsu into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Fundamental Global and Yoshitsu Co Ltd, you can compare the effects of market volatilities on Fundamental Global and Yoshitsu 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 Fundamental Global with a short position of Yoshitsu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fundamental Global and Yoshitsu.

Diversification Opportunities for Fundamental Global and Yoshitsu

0.24

Correlation Coefficient

Fundamental Global  Yoshitsu

Modest diversification

The 3 months correlation between Fundamental and Yoshitsu is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Fundamental Global and Yoshitsu Co Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yoshitsu and Fundamental Global 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 Fundamental Global are associated (or correlated) with Yoshitsu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yoshitsu has no effect on the direction of Fundamental Global i.e., Fundamental Global and Yoshitsu go up and down completely randomly.

Pair Corralation between Fundamental Global and Yoshitsu

Considering the 90-day investment horizon Fundamental Global is expected to generate 1.57 times more return on investment than Yoshitsu. However, Fundamental Global is 1.57 times more volatile than Yoshitsu Co Ltd. It trades about 0.01 of its potential returns per unit of risk. Yoshitsu Co Ltd is currently generating about -0.01 per unit of risk. If you would invest  1,956  in Fundamental Global on December 30, 2024 and sell it today you would lose (113.00) from holding Fundamental Global or give up 5.78% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Fundamental Global  vs.  Yoshitsu Co Ltd

Fundamental Global

Risk-Adjusted Performance

Very Weak

Over the last 90 days Fundamental Global has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical and fundamental indicators, Fundamental Global is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Yoshitsu

Risk-Adjusted Performance

Very Weak

Over the last 90 days Yoshitsu Co Ltd has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable essential indicators, Yoshitsu is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Fundamental Global and Yoshitsu

The main advantage of trading using opposite Fundamental Global and Yoshitsu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fundamental Global position performs unexpectedly, Yoshitsu 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 Yoshitsu will offset losses from the drop in Yoshitsu's long position.

The idea behind Fundamental Global and Yoshitsu Co Ltd pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.