Correlation Between KUKA Aktiengesellscha and Fanuc

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

By analyzing existing cross correlation between KUKA Aktiengesellschaft and Fanuc, you can compare the effects of market volatilities on KUKA Aktiengesellscha and Fanuc 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 KUKA Aktiengesellscha with a short position of Fanuc. Check out your portfolio center. Please also check ongoing floating volatility patterns of KUKA Aktiengesellscha and Fanuc.

Diversification Opportunities for KUKA Aktiengesellscha and Fanuc

0.0

Correlation Coefficient

KUKA Aktiengesellscha  Fanuc

Pay attention - limited upside

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

Pair Corralation between KUKA Aktiengesellscha and Fanuc

If you would invest  7,796  in KUKA Aktiengesellschaft on September 29, 2024 and sell it today you would earn a total of  0.00  from holding KUKA Aktiengesellschaft or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.59%
Values	Daily Returns

KUKA Aktiengesellschaft  vs.  Fanuc

KUKA Aktiengesellschaft

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days KUKA Aktiengesellschaft has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, KUKA Aktiengesellscha is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Fanuc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Fanuc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest abnormal 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.

Pair Trading with KUKA Aktiengesellscha and Fanuc

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

The idea behind KUKA Aktiengesellschaft and Fanuc 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.