Correlation Between Marui Group and Capital Financial
Can any of the company-specific risk be diversified away by investing in both Marui Group and Capital Financial 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 Marui Group and Capital Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Marui Group Co and Capital Financial Gl, you can compare the effects of market volatilities on Marui Group and Capital Financial 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 Marui Group with a short position of Capital Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marui Group and Capital Financial.
Diversification Opportunities for Marui Group and Capital Financial
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Marui and Capital is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Marui Group Co and Capital Financial Gl in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Capital Financial and Marui Group 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 Marui Group Co are associated (or correlated) with Capital Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Capital Financial has no effect on the direction of Marui Group i.e., Marui Group and Capital Financial go up and down completely randomly.
Pair Corralation between Marui Group and Capital Financial
If you would invest 3,115 in Marui Group Co on October 24, 2024 and sell it today you would earn a total of 388.00 from holding Marui Group Co or generate 12.46% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Marui Group Co vs. Capital Financial Gl
Performance |
Timeline |
Marui Group |
Capital Financial |
Marui Group and Capital Financial Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Marui Group and Capital Financial
The main advantage of trading using opposite Marui Group and Capital Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marui Group position performs unexpectedly, Capital Financial 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 Capital Financial will offset losses from the drop in Capital Financial's long position.Marui Group vs. American Express | ||
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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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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