Correlation Between Fast Retailing and National Retail
Can any of the company-specific risk be diversified away by investing in both Fast Retailing and National Retail 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 Fast Retailing and National Retail into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fast Retailing Co and National Retail Properties, you can compare the effects of market volatilities on Fast Retailing and National Retail 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 Fast Retailing with a short position of National Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fast Retailing and National Retail.
Diversification Opportunities for Fast Retailing and National Retail
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Fast and National is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Fast Retailing Co and National Retail Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National Retail Prop and Fast Retailing 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 Fast Retailing Co are associated (or correlated) with National Retail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of National Retail Prop has no effect on the direction of Fast Retailing i.e., Fast Retailing and National Retail go up and down completely randomly.
Pair Corralation between Fast Retailing and National Retail
Assuming the 90 days trading horizon Fast Retailing Co is expected to generate 2.79 times more return on investment than National Retail. However, Fast Retailing is 2.79 times more volatile than National Retail Properties. It trades about 0.12 of its potential returns per unit of risk. National Retail Properties is currently generating about -0.02 per unit of risk. If you would invest 26,500 in Fast Retailing Co on September 1, 2025 and sell it today you would earn a total of 4,760 from holding Fast Retailing Co or generate 17.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fast Retailing Co vs. National Retail Properties
Performance |
| Timeline |
| Fast Retailing |
| National Retail Prop |
Fast Retailing and National Retail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fast Retailing and National Retail
The main advantage of trading using opposite Fast Retailing and National Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fast Retailing position performs unexpectedly, National Retail 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 National Retail will offset losses from the drop in National Retail's long position.| Fast Retailing vs. Cognizant Technology Solutions | Fast Retailing vs. Elmos Semiconductor SE | Fast Retailing vs. Firan Technology Group | Fast Retailing vs. SIVERS SEMICONDUCTORS AB |
| National Retail vs. AGRICULTBK HADR25 YC | National Retail vs. TROPHY GAMES DEV | National Retail vs. Penta Ocean Construction Co | National Retail vs. EAST SIDE GAMES |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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