Correlation Between Furukawa Electric and Cronos
Can any of the company-specific risk be diversified away by investing in both Furukawa Electric and Cronos 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 Furukawa Electric and Cronos into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Furukawa Electric Co and Cronos Group, you can compare the effects of market volatilities on Furukawa Electric and Cronos 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 Furukawa Electric with a short position of Cronos. Check out your portfolio center. Please also check ongoing floating volatility patterns of Furukawa Electric and Cronos.
Diversification Opportunities for Furukawa Electric and Cronos
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Furukawa and Cronos is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Furukawa Electric Co and Cronos Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cronos Group and Furukawa 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 Furukawa Electric Co are associated (or correlated) with Cronos. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cronos Group has no effect on the direction of Furukawa Electric i.e., Furukawa Electric and Cronos go up and down completely randomly.
Pair Corralation between Furukawa Electric and Cronos
If you would invest 202.00 in Cronos Group on October 8, 2024 and sell it today you would earn a total of 5.00 from holding Cronos Group or generate 2.48% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Furukawa Electric Co vs. Cronos Group
Performance |
Timeline |
Furukawa Electric |
Cronos Group |
Furukawa Electric and Cronos Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Furukawa Electric and Cronos
The main advantage of trading using opposite Furukawa Electric and Cronos positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Furukawa Electric position performs unexpectedly, Cronos 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 Cronos will offset losses from the drop in Cronos' long position.Furukawa Electric vs. FREYR Battery SA | Furukawa Electric vs. nVent Electric PLC | Furukawa Electric vs. Hubbell | Furukawa Electric vs. Advanced Energy Industries |
Cronos vs. OrganiGram Holdings | Cronos vs. Aurora Cannabis | Cronos vs. SNDL Inc | Cronos vs. Canopy Growth Corp |
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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