Correlation Between Takara Holdings and BANK HANDLOWY

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

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

Diversification Opportunities for Takara Holdings and BANK HANDLOWY

-0.04

Correlation Coefficient

Takara Holdings  BANK HANDLOWY

Good diversification

The 3 months correlation between Takara and BANK is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Takara Holdings and BANK HANDLOWY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BANK HANDLOWY and Takara 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 Takara Holdings are associated (or correlated) with BANK HANDLOWY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BANK HANDLOWY has no effect on the direction of Takara Holdings i.e., Takara Holdings and BANK HANDLOWY go up and down completely randomly.

Pair Corralation between Takara Holdings and BANK HANDLOWY

Assuming the 90 days horizon Takara Holdings is expected to generate 16.59 times less return on investment than BANK HANDLOWY. But when comparing it to its historical volatility, Takara Holdings is 2.95 times less risky than BANK HANDLOWY. It trades about 0.01 of its potential returns per unit of risk. BANK HANDLOWY is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  455.00  in BANK HANDLOWY on September 4, 2024 and sell it today you would earn a total of  1,575  from holding BANK HANDLOWY or generate 346.15% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	99.8%
Values	Daily Returns

Takara Holdings  vs.  BANK HANDLOWY

Takara Holdings

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Takara Holdings are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Takara Holdings may actually be approaching a critical reversion point that can send shares even higher in January 2025.

BANK HANDLOWY

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days BANK HANDLOWY has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with Takara Holdings and BANK HANDLOWY

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

The idea behind Takara Holdings and BANK HANDLOWY 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.