Correlation Between Isuzu Motors and Aisin
Can any of the company-specific risk be diversified away by investing in both Isuzu Motors and Aisin 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 Isuzu Motors and Aisin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Isuzu Motors Limited and Aisin, you can compare the effects of market volatilities on Isuzu Motors and Aisin 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 Isuzu Motors with a short position of Aisin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Isuzu Motors and Aisin.
Diversification Opportunities for Isuzu Motors and Aisin
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Isuzu and Aisin is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Isuzu Motors Limited and Aisin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aisin and Isuzu Motors 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 Isuzu Motors Limited are associated (or correlated) with Aisin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aisin has no effect on the direction of Isuzu Motors i.e., Isuzu Motors and Aisin go up and down completely randomly.
Pair Corralation between Isuzu Motors and Aisin
Assuming the 90 days horizon Isuzu Motors Limited is expected to generate 0.34 times more return on investment than Aisin. However, Isuzu Motors Limited is 2.97 times less risky than Aisin. It trades about 0.06 of its potential returns per unit of risk. Aisin is currently generating about -0.13 per unit of risk. If you would invest 1,323 in Isuzu Motors Limited on September 10, 2025 and sell it today you would earn a total of 135.00 from holding Isuzu Motors Limited or generate 10.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.44% |
| Values | Daily Returns |
Isuzu Motors Limited vs. Aisin
Performance |
| Timeline |
| Isuzu Motors Limited |
| Aisin |
Isuzu Motors and Aisin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Isuzu Motors and Aisin
The main advantage of trading using opposite Isuzu Motors and Aisin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Isuzu Motors position performs unexpectedly, Aisin 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 Aisin will offset losses from the drop in Aisin's long position.| Isuzu Motors vs. Yamaha Motor Co | Isuzu Motors vs. Nissan Motor Co | Isuzu Motors vs. Nissan Motor Co | Isuzu Motors vs. Yamaha Motor Co |
| Aisin vs. NGK Spark Plug | Aisin vs. Pirelli C SpA | Aisin vs. Schaeffler AG | Aisin vs. Isuzu Motors Limited |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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