Correlation Between FUJIFILM Holdings and Steelcase

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

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

Diversification Opportunities for FUJIFILM Holdings and Steelcase

0.13

Correlation Coefficient

FUJIFILM Holdings  Steelcase

Average diversification

The 3 months correlation between FUJIFILM and Steelcase is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding FUJIFILM Holdings and Steelcase in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Steelcase and FUJIFILM Holdings 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 FUJIFILM Holdings are associated (or correlated) with Steelcase. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Steelcase has no effect on the direction of FUJIFILM Holdings i.e., FUJIFILM Holdings and Steelcase go up and down completely randomly.

Pair Corralation between FUJIFILM Holdings and Steelcase

Assuming the 90 days horizon FUJIFILM Holdings is expected to generate 2.71 times more return on investment than Steelcase. However, FUJIFILM Holdings is 2.71 times more volatile than Steelcase. It trades about -0.05 of its potential returns per unit of risk. Steelcase is currently generating about -0.17 per unit of risk. If you would invest  2,177  in FUJIFILM Holdings on October 9, 2024 and sell it today you would lose (314.00) from holding FUJIFILM Holdings or give up 14.42% of portfolio value over 90 days.

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

FUJIFILM Holdings  vs.  Steelcase

FUJIFILM Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days FUJIFILM Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's forward indicators remain nearly stable which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Steelcase

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Steelcase has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest fragile performance, the Stock's fundamental indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with FUJIFILM Holdings and Steelcase

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

The idea behind FUJIFILM Holdings and Steelcase 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.

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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 Bonds Directory module to find actively traded corporate debentures issued by US companies.