Correlation Between YASKAWA Electric and Exro Technologies
Can any of the company-specific risk be diversified away by investing in both YASKAWA Electric and Exro Technologies 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 YASKAWA Electric and Exro Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between YASKAWA Electric and Exro Technologies, you can compare the effects of market volatilities on YASKAWA Electric and Exro Technologies 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 YASKAWA Electric with a short position of Exro Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of YASKAWA Electric and Exro Technologies.
Diversification Opportunities for YASKAWA Electric and Exro Technologies
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between YASKAWA and Exro is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding YASKAWA Electric and Exro Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Exro Technologies and YASKAWA Electric 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 YASKAWA Electric are associated (or correlated) with Exro Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Exro Technologies has no effect on the direction of YASKAWA Electric i.e., YASKAWA Electric and Exro Technologies go up and down completely randomly.
Pair Corralation between YASKAWA Electric and Exro Technologies
If you would invest 4,094 in YASKAWA Electric on December 30, 2023 and sell it today you would earn a total of 0.00 from holding YASKAWA Electric or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
YASKAWA Electric vs. Exro Technologies
Performance |
Timeline |
YASKAWA Electric |
Exro Technologies |
YASKAWA Electric and Exro Technologies Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with YASKAWA Electric and Exro Technologies
The main advantage of trading using opposite YASKAWA Electric and Exro Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YASKAWA Electric position performs unexpectedly, Exro Technologies 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 Exro Technologies will offset losses from the drop in Exro Technologies' long position.YASKAWA Electric vs. ABB | YASKAWA Electric vs. Vertiv Holdings Co | YASKAWA Electric vs. Legrand SA ADR | YASKAWA Electric vs. Mitsubishi Electric Corp |
Exro Technologies vs. ABB | Exro Technologies vs. Vertiv Holdings Co | Exro Technologies vs. Legrand SA ADR | Exro Technologies vs. Mitsubishi Electric Corp |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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