Correlation Between Rjd Green and Marubeni

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

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

Diversification Opportunities for Rjd Green and Marubeni

-0.44

Correlation Coefficient

Rjd Green  Marubeni

Very good diversification

The 3 months correlation between Rjd and Marubeni is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Rjd Green and Marubeni in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marubeni and Rjd Green 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 Rjd Green are associated (or correlated) with Marubeni. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marubeni has no effect on the direction of Rjd Green i.e., Rjd Green and Marubeni go up and down completely randomly.

Pair Corralation between Rjd Green and Marubeni

Given the investment horizon of 90 days Rjd Green is expected to generate 3.27 times more return on investment than Marubeni. However, Rjd Green is 3.27 times more volatile than Marubeni. It trades about 0.08 of its potential returns per unit of risk. Marubeni is currently generating about 0.1 per unit of risk. If you would invest  0.66  in Rjd Green on December 28, 2024 and sell it today you would earn a total of  0.13  from holding Rjd Green or generate 19.7% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Rjd Green  vs.  Marubeni

Rjd Green

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Rjd Green are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite nearly conflicting fundamental indicators, Rjd Green reported solid returns over the last few months and may actually be approaching a breakup point.

Marubeni

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Marubeni are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, Marubeni reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Rjd Green and Marubeni

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

The idea behind Rjd Green and Marubeni 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.