Correlation Between Medirom Healthcare and FGI Industries
Can any of the company-specific risk be diversified away by investing in both Medirom Healthcare and FGI Industries 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 Medirom Healthcare and FGI Industries into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Medirom Healthcare Technologies and FGI Industries, you can compare the effects of market volatilities on Medirom Healthcare and FGI Industries 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 Medirom Healthcare with a short position of FGI Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Medirom Healthcare and FGI Industries.
Diversification Opportunities for Medirom Healthcare and FGI Industries
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Medirom and FGI is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Medirom Healthcare Technologie and FGI Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FGI Industries and Medirom Healthcare 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 Medirom Healthcare Technologies are associated (or correlated) with FGI Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FGI Industries has no effect on the direction of Medirom Healthcare i.e., Medirom Healthcare and FGI Industries go up and down completely randomly.
Pair Corralation between Medirom Healthcare and FGI Industries
Considering the 90-day investment horizon Medirom Healthcare Technologies is expected to generate 1.16 times more return on investment than FGI Industries. However, Medirom Healthcare is 1.16 times more volatile than FGI Industries. It trades about 0.11 of its potential returns per unit of risk. FGI Industries is currently generating about 0.08 per unit of risk. If you would invest 133.00 in Medirom Healthcare Technologies on August 2, 2025 and sell it today you would earn a total of 90.00 from holding Medirom Healthcare Technologies or generate 67.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Medirom Healthcare Technologie vs. FGI Industries
Performance |
| Timeline |
| Medirom Healthcare |
| FGI Industries |
Medirom Healthcare and FGI Industries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Medirom Healthcare and FGI Industries
The main advantage of trading using opposite Medirom Healthcare and FGI Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Medirom Healthcare position performs unexpectedly, FGI Industries 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 FGI Industries will offset losses from the drop in FGI Industries' long position.| Medirom Healthcare vs. YY Group Holding | Medirom Healthcare vs. Bt Brands | Medirom Healthcare vs. DSS Inc | Medirom Healthcare vs. Aterian |
| FGI Industries vs. Aterian | FGI Industries vs. Thunder Power Holdings, | FGI Industries vs. Creative Global Technology | FGI Industries vs. Bt Brands |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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