Correlation Between Fast Retailing and Real Asset
Can any of the company-specific risk be diversified away by investing in both Fast Retailing and Real Asset 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 Real Asset 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 Real Asset Acquisition, you can compare the effects of market volatilities on Fast Retailing and Real Asset 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 Real Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fast Retailing and Real Asset.
Diversification Opportunities for Fast Retailing and Real Asset
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Fast and Real is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Fast Retailing Co and Real Asset Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Real Asset Acquisition 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 Real Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Real Asset Acquisition has no effect on the direction of Fast Retailing i.e., Fast Retailing and Real Asset go up and down completely randomly.
Pair Corralation between Fast Retailing and Real Asset
Assuming the 90 days horizon Fast Retailing Co is expected to generate 6.22 times more return on investment than Real Asset. However, Fast Retailing is 6.22 times more volatile than Real Asset Acquisition. It trades about 0.08 of its potential returns per unit of risk. Real Asset Acquisition is currently generating about 0.07 per unit of risk. If you would invest 32,105 in Fast Retailing Co on August 29, 2025 and sell it today you would earn a total of 3,895 from holding Fast Retailing Co or generate 12.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.44% |
| Values | Daily Returns |
Fast Retailing Co vs. Real Asset Acquisition
Performance |
| Timeline |
| Fast Retailing |
| Real Asset Acquisition |
Fast Retailing and Real Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fast Retailing and Real Asset
The main advantage of trading using opposite Fast Retailing and Real Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fast Retailing position performs unexpectedly, Real Asset 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 Real Asset will offset losses from the drop in Real Asset's long position.| Fast Retailing vs. Agricultural Bank of | Fast Retailing vs. Uber Technologies | Fast Retailing vs. Everus Construction Group | Fast Retailing vs. CleanTech Lithium Plc |
| Real Asset vs. Flow Traders | Real Asset vs. PARKSON Retail Group | Real Asset vs. Fast Retailing Co | Real Asset vs. Foreign Trade Bank |
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.
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