Correlation Between YASKAWA Electric and Exro Technologies

Specify exactly 2 symbols:
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 Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

YASKAWA Electric  vs.  Exro Technologies

 Performance 
       Timeline  
YASKAWA Electric 

Risk-Adjusted Performance

10 of 100

 
Low
 
High
OK
Compared to the overall equity markets, risk-adjusted returns on investments in YASKAWA Electric are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile forward-looking signals, YASKAWA Electric reported solid returns over the last few months and may actually be approaching a breakup point.
Exro Technologies 

Risk-Adjusted Performance

0 of 100

 
Low
 
High
Very Weak
Over the last 90 days Exro Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in April 2024. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

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.
The idea behind YASKAWA Electric and Exro Technologies 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.

Other Complementary Tools

Crypto Correlations
Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins
Funds Screener
Find actively-traded funds from around the world traded on over 30 global exchanges
Portfolio Holdings
Check your current holdings and cash postion to detemine if your portfolio needs rebalancing
Bollinger Bands
Use Bollinger Bands indicator to analyze target price for a given investing horizon
Sign In To Macroaxis
Sign in to explore Macroaxis' wealth optimization platform and fintech modules
Efficient Frontier
Plot and analyze your portfolio and positions against risk-return landscape of the market.
Companies Directory
Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals
Latest Portfolios
Quick portfolio dashboard that showcases your latest portfolios