Correlation Between Teijin and Berli Jucker

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

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

Diversification Opportunities for Teijin and Berli Jucker

-0.08

Correlation Coefficient

Teijin  Berli Jucker

Good diversification

The 3 months correlation between Teijin and Berli is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Teijin and Berli Jucker PCL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Berli Jucker PCL and Teijin 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 Teijin are associated (or correlated) with Berli Jucker. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Berli Jucker PCL has no effect on the direction of Teijin i.e., Teijin and Berli Jucker go up and down completely randomly.

Pair Corralation between Teijin and Berli Jucker

If you would invest  819.00  in Teijin on October 10, 2024 and sell it today you would earn a total of  31.00  from holding Teijin or generate 3.79% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	4.76%
Values	Daily Returns

Teijin  vs.  Berli Jucker PCL

Teijin

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Teijin has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's essential indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Berli Jucker PCL

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Berli Jucker PCL has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Berli Jucker is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Teijin and Berli Jucker

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

The idea behind Teijin and Berli Jucker PCL 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.