Correlation Between El Puerto and Tokyu
Can any of the company-specific risk be diversified away by investing in both El Puerto and Tokyu 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 El Puerto and Tokyu into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between El Puerto de and Tokyu, you can compare the effects of market volatilities on El Puerto and Tokyu 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 El Puerto with a short position of Tokyu. Check out your portfolio center. Please also check ongoing floating volatility patterns of El Puerto and Tokyu.
Diversification Opportunities for El Puerto and Tokyu
Good diversification
The 3 months correlation between ELPQF and Tokyu is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding El Puerto de and Tokyu in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tokyu and El Puerto 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 El Puerto de are associated (or correlated) with Tokyu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tokyu has no effect on the direction of El Puerto i.e., El Puerto and Tokyu go up and down completely randomly.
Pair Corralation between El Puerto and Tokyu
Assuming the 90 days horizon El Puerto is expected to generate 3.05 times less return on investment than Tokyu. But when comparing it to its historical volatility, El Puerto de is 1.5 times less risky than Tokyu. It trades about 0.06 of its potential returns per unit of risk. Tokyu is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 952.00 in Tokyu on August 24, 2025 and sell it today you would earn a total of 184.00 from holding Tokyu or generate 19.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
El Puerto de vs. Tokyu
Performance |
| Timeline |
| El Puerto de |
| Tokyu |
El Puerto and Tokyu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with El Puerto and Tokyu
The main advantage of trading using opposite El Puerto and Tokyu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if El Puerto position performs unexpectedly, Tokyu 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 Tokyu will offset losses from the drop in Tokyu's long position.| El Puerto vs. ZALANDO SE ADR | El Puerto vs. Delivery Hero SE | El Puerto vs. Canadian Tire | El Puerto vs. ZOZO Inc |
| Tokyu vs. MGM China Holdings | Tokyu vs. Bosideng International Holdings | Tokyu vs. Tongcheng Travel Holdings | Tokyu vs. Canadian Tire |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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