Correlation Between CyberAgent and HAKUHODO

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

By analyzing existing cross correlation between CyberAgent and HAKUHODO DY HLDG, you can compare the effects of market volatilities on CyberAgent and HAKUHODO 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 HAKUHODO. Check out your portfolio center. Please also check ongoing floating volatility patterns of CyberAgent and HAKUHODO.

Diversification Opportunities for CyberAgent and HAKUHODO

0.0

Correlation Coefficient

CyberAgent  HAKUHODO

Pay attention - limited upside

The 3 months correlation between CyberAgent and HAKUHODO is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CyberAgent and HAKUHODO DY HLDG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HAKUHODO DY HLDG 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 HAKUHODO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HAKUHODO DY HLDG has no effect on the direction of CyberAgent i.e., CyberAgent and HAKUHODO go up and down completely randomly.

Pair Corralation between CyberAgent and HAKUHODO

If you would invest  720.00  in CyberAgent on April 23, 2025 and sell it today you would earn a total of  170.00  from holding CyberAgent or generate 23.61% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

CyberAgent  vs.  HAKUHODO DY HLDG

CyberAgent

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in CyberAgent are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, CyberAgent reported solid returns over the last few months and may actually be approaching a breakup point.

HAKUHODO DY HLDG

Risk-Adjusted Performance

Very Weak

Over the last 90 days HAKUHODO DY HLDG has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, HAKUHODO is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with CyberAgent and HAKUHODO

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

The idea behind CyberAgent and HAKUHODO DY HLDG 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..