Correlation Between Acushnet Holdings and Yamaha Corp

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

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

Diversification Opportunities for Acushnet Holdings and Yamaha Corp

-0.77

Correlation Coefficient

Acushnet Holdings  Yamaha Corp

Pay attention - limited upside

The 3 months correlation between Acushnet and Yamaha is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Acushnet Holdings Corp and Yamaha Corp DRC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yamaha Corp DRC and Acushnet 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 Acushnet Holdings Corp are associated (or correlated) with Yamaha Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yamaha Corp DRC has no effect on the direction of Acushnet Holdings i.e., Acushnet Holdings and Yamaha Corp go up and down completely randomly.

Pair Corralation between Acushnet Holdings and Yamaha Corp

Given the investment horizon of 90 days Acushnet Holdings Corp is expected to generate 0.93 times more return on investment than Yamaha Corp. However, Acushnet Holdings Corp is 1.07 times less risky than Yamaha Corp. It trades about 0.09 of its potential returns per unit of risk. Yamaha Corp DRC is currently generating about -0.1 per unit of risk. If you would invest  6,569  in Acushnet Holdings Corp on September 14, 2024 and sell it today you would earn a total of  763.50  from holding Acushnet Holdings Corp or generate 11.62% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	98.44%
Values	Daily Returns

Acushnet Holdings Corp  vs.  Yamaha Corp DRC

Acushnet Holdings Corp

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Acushnet Holdings Corp are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite nearly conflicting essential indicators, Acushnet Holdings may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Yamaha Corp DRC

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Yamaha Corp DRC has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's fundamental indicators remain fairly strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Acushnet Holdings and Yamaha Corp

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

The idea behind Acushnet Holdings Corp and Yamaha Corp DRC 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.