Correlation Between CyberAgent and Fukuyama Transporting

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Can any of the company-specific risk be diversified away by investing in both CyberAgent and Fukuyama Transporting 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 CyberAgent and Fukuyama Transporting into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CyberAgent and Fukuyama Transporting Co, you can compare the effects of market volatilities on CyberAgent and Fukuyama Transporting 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 CyberAgent with a short position of Fukuyama Transporting. Check out your portfolio center. Please also check ongoing floating volatility patterns of CyberAgent and Fukuyama Transporting.

Diversification Opportunities for CyberAgent and Fukuyama Transporting

-0.84
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between CyberAgent and Fukuyama is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding CyberAgent and Fukuyama Transporting Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fukuyama Transporting and CyberAgent 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 CyberAgent are associated (or correlated) with Fukuyama Transporting. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fukuyama Transporting has no effect on the direction of CyberAgent i.e., CyberAgent and Fukuyama Transporting go up and down completely randomly.

Pair Corralation between CyberAgent and Fukuyama Transporting

Assuming the 90 days horizon CyberAgent is expected to generate 1.64 times more return on investment than Fukuyama Transporting. However, CyberAgent is 1.64 times more volatile than Fukuyama Transporting Co. It trades about 0.16 of its potential returns per unit of risk. Fukuyama Transporting Co is currently generating about -0.1 per unit of risk. If you would invest  715.00  in CyberAgent on April 24, 2025 and sell it today you would earn a total of  185.00  from holding CyberAgent or generate 25.87% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

CyberAgent  vs.  Fukuyama Transporting Co

 Performance 
       Timeline  
CyberAgent 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in CyberAgent are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, CyberAgent reported solid returns over the last few months and may actually be approaching a breakup point.
Fukuyama Transporting 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Fukuyama Transporting Co has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

CyberAgent and Fukuyama Transporting Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with CyberAgent and Fukuyama Transporting

The main advantage of trading using opposite CyberAgent and Fukuyama Transporting positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CyberAgent position performs unexpectedly, Fukuyama Transporting 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 Fukuyama Transporting will offset losses from the drop in Fukuyama Transporting's long position.
The idea behind CyberAgent and Fukuyama Transporting Co 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.

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