Correlation Between Casio Computer and Sharp

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

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

Diversification Opportunities for Casio Computer and Sharp

-0.04

Correlation Coefficient

Casio Computer  Sharp

Good diversification

The 3 months correlation between Casio and Sharp is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Casio Computer Co and Sharp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sharp and Casio Computer 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 Casio Computer Co are associated (or correlated) with Sharp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sharp has no effect on the direction of Casio Computer i.e., Casio Computer and Sharp go up and down completely randomly.

Pair Corralation between Casio Computer and Sharp

Assuming the 90 days horizon Casio Computer Co is expected to generate 1.12 times more return on investment than Sharp. However, Casio Computer is 1.12 times more volatile than Sharp. It trades about 0.03 of its potential returns per unit of risk. Sharp is currently generating about -0.16 per unit of risk. If you would invest  7,921  in Casio Computer Co on April 25, 2025 and sell it today you would earn a total of  225.00  from holding Casio Computer Co or generate 2.84% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.39%
Values	Daily Returns

Casio Computer Co  vs.  Sharp

Casio Computer

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Casio Computer Co are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of fairly strong basic indicators, Casio Computer is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Sharp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Sharp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in August 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with Casio Computer and Sharp

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

The idea behind Casio Computer Co and Sharp 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.