Correlation Between BOS Better and Fast Retailing

Can any of the company-specific risk be diversified away by investing in both BOS Better and Fast Retailing 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 BOS Better and Fast Retailing into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between BOS Better Online and Fast Retailing Co, you can compare the effects of market volatilities on BOS Better and Fast Retailing 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 BOS Better with a short position of Fast Retailing. Check out your portfolio center. Please also check ongoing floating volatility patterns of BOS Better and Fast Retailing.

Diversification Opportunities for BOS Better and Fast Retailing

0.37

Correlation Coefficient

BOS Better  Fast Retailing

Weak diversification

The 3 months correlation between BOS and Fast is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding BOS Better Online and Fast Retailing Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fast Retailing and BOS Better 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 BOS Better Online are associated (or correlated) with Fast Retailing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fast Retailing has no effect on the direction of BOS Better i.e., BOS Better and Fast Retailing go up and down completely randomly.

Pair Corralation between BOS Better and Fast Retailing

Given the investment horizon of 90 days BOS Better Online is expected to under-perform the Fast Retailing. In addition to that, BOS Better is 1.06 times more volatile than Fast Retailing Co. It trades about -0.04 of its total potential returns per unit of risk. Fast Retailing Co is currently generating about 0.04 per unit of volatility. If you would invest  34,456  in Fast Retailing Co on August 27, 2025 and sell it today you would earn a total of  1,544  from holding Fast Retailing Co or generate 4.48% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

BOS Better Online  vs.  Fast Retailing Co

BOS Better Online

Risk-Adjusted Performance

Weakest

Over the last 90 days BOS Better Online has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest fragile performance, the Stock's basic indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Fast Retailing

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Fast Retailing Co are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly unfluctuating basic indicators, Fast Retailing may actually be approaching a critical reversion point that can send shares even higher in December 2025.

Pair Trading with BOS Better and Fast Retailing

The main advantage of trading using opposite BOS Better and Fast Retailing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BOS Better position performs unexpectedly, Fast Retailing 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 Fast Retailing will offset losses from the drop in Fast Retailing's long position.

The idea behind BOS Better Online and Fast Retailing Co pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.