Correlation Between Komori and Ushio

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

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

Diversification Opportunities for Komori and Ushio

0.0

Correlation Coefficient

Komori  Ushio

Pay attention - limited upside

The 3 months correlation between Komori and Ushio is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Komori and Ushio Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ushio Inc and Komori 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 Komori are associated (or correlated) with Ushio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ushio Inc has no effect on the direction of Komori i.e., Komori and Ushio go up and down completely randomly.

Pair Corralation between Komori and Ushio

If you would invest  1,248  in Ushio Inc on December 4, 2024 and sell it today you would earn a total of  162.00  from holding Ushio Inc or generate 12.98% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Komori  vs.  Ushio Inc

Komori

Risk-Adjusted Performance

Very Weak

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

Ushio Inc

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Ushio Inc are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable forward indicators, Ushio is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Komori and Ushio

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

The idea behind Komori and Ushio Inc 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.