Correlation Between Tokyu Corp and Aisin
Can any of the company-specific risk be diversified away by investing in both Tokyu Corp 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 Tokyu Corp and Aisin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tokyu Corp ADR and Aisin, you can compare the effects of market volatilities on Tokyu Corp 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 Tokyu Corp with a short position of Aisin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tokyu Corp and Aisin.
Diversification Opportunities for Tokyu Corp and Aisin
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Tokyu and Aisin is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Tokyu Corp ADR and Aisin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aisin and Tokyu Corp 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 Tokyu Corp ADR 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 Tokyu Corp i.e., Tokyu Corp and Aisin go up and down completely randomly.
Pair Corralation between Tokyu Corp and Aisin
Assuming the 90 days horizon Tokyu Corp ADR is expected to generate 0.14 times more return on investment than Aisin. However, Tokyu Corp ADR is 6.99 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 1,281 in Tokyu Corp ADR on September 3, 2025 and sell it today you would lose (156.00) from holding Tokyu Corp ADR or give up 12.18% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 98.44% |
| Values | Daily Returns |
Tokyu Corp ADR vs. Aisin
Performance |
| Timeline |
| Tokyu Corp ADR |
| Aisin |
Tokyu Corp and Aisin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tokyu Corp and Aisin
The main advantage of trading using opposite Tokyu Corp and Aisin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tokyu Corp 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.| Tokyu Corp vs. BW Offshore Limited | Tokyu Corp vs. G III Apparel Group | Tokyu Corp vs. CarsalesCom Ltd ADR | Tokyu Corp vs. China Outfitters Holdings |
| Aisin vs. Logansport Financial Corp | Aisin vs. American Transportation Holdings | Aisin vs. Dicks Sporting Goods | Aisin vs. Knight Transportation |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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