Correlation Between FUYO GENERAL and Nintendo

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

By analyzing existing cross correlation between FUYO GENERAL LEASE and Nintendo Co, you can compare the effects of market volatilities on FUYO GENERAL and Nintendo 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 FUYO GENERAL with a short position of Nintendo. Check out your portfolio center. Please also check ongoing floating volatility patterns of FUYO GENERAL and Nintendo.

Diversification Opportunities for FUYO GENERAL and Nintendo

-0.54

Correlation Coefficient

FUYO GENERAL  Nintendo

Excellent diversification

The 3 months correlation between FUYO and Nintendo is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding FUYO GENERAL LEASE and Nintendo Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nintendo and FUYO GENERAL 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 FUYO GENERAL LEASE are associated (or correlated) with Nintendo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nintendo has no effect on the direction of FUYO GENERAL i.e., FUYO GENERAL and Nintendo go up and down completely randomly.

Pair Corralation between FUYO GENERAL and Nintendo

Assuming the 90 days horizon FUYO GENERAL LEASE is expected to under-perform the Nintendo. But the stock apears to be less risky and, when comparing its historical volatility, FUYO GENERAL LEASE is 2.54 times less risky than Nintendo. The stock trades about -0.11 of its potential returns per unit of risk. The Nintendo Co is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  1,720  in Nintendo Co on April 25, 2025 and sell it today you would earn a total of  150.00  from holding Nintendo Co or generate 8.72% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

FUYO GENERAL LEASE  vs.  Nintendo Co

FUYO GENERAL LEASE

Risk-Adjusted Performance

Very Weak

Over the last 90 days FUYO GENERAL LEASE 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.

Nintendo

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Nintendo Co are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Nintendo may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with FUYO GENERAL and Nintendo

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

The idea behind FUYO GENERAL LEASE and Nintendo 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.