Correlation Between FAST RETAIL and Ichor Coal
Can any of the company-specific risk be diversified away by investing in both FAST RETAIL and Ichor Coal 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 FAST RETAIL and Ichor Coal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FAST RETAIL ADR and Ichor Coal NV, you can compare the effects of market volatilities on FAST RETAIL and Ichor Coal 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 FAST RETAIL with a short position of Ichor Coal. Check out your portfolio center. Please also check ongoing floating volatility patterns of FAST RETAIL and Ichor Coal.
Diversification Opportunities for FAST RETAIL and Ichor Coal
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between FAST and Ichor is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding FAST RETAIL ADR and Ichor Coal NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ichor Coal NV and FAST RETAIL 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 FAST RETAIL ADR are associated (or correlated) with Ichor Coal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ichor Coal NV has no effect on the direction of FAST RETAIL i.e., FAST RETAIL and Ichor Coal go up and down completely randomly.
Pair Corralation between FAST RETAIL and Ichor Coal
If you would invest 3,080 in FAST RETAIL ADR on September 24, 2024 and sell it today you would earn a total of 100.00 from holding FAST RETAIL ADR or generate 3.25% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 90.48% |
Values | Daily Returns |
FAST RETAIL ADR vs. Ichor Coal NV
Performance |
Timeline |
FAST RETAIL ADR |
Ichor Coal NV |
FAST RETAIL and Ichor Coal Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with FAST RETAIL and Ichor Coal
The main advantage of trading using opposite FAST RETAIL and Ichor Coal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FAST RETAIL position performs unexpectedly, Ichor Coal 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 Ichor Coal will offset losses from the drop in Ichor Coal's long position.FAST RETAIL vs. DELTA AIR LINES | FAST RETAIL vs. Air New Zealand | FAST RETAIL vs. Playtech plc | FAST RETAIL vs. COLUMBIA SPORTSWEAR |
Ichor Coal vs. CHINA SHENHUA ENA | Ichor Coal vs. China Coal Energy | Ichor Coal vs. Yancoal Australia | Ichor Coal vs. Banpu PCL |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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