Correlation Between Toshiba and Fujitsu

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

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

Diversification Opportunities for Toshiba and Fujitsu

0.0

Correlation Coefficient

Toshiba  Fujitsu

Pay attention - limited upside

The 3 months correlation between Toshiba and Fujitsu is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Toshiba and Fujitsu Ltd ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fujitsu Ltd ADR and Toshiba 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 Toshiba are associated (or correlated) with Fujitsu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fujitsu Ltd ADR has no effect on the direction of Toshiba i.e., Toshiba and Fujitsu go up and down completely randomly.

Pair Corralation between Toshiba and Fujitsu

If you would invest  2,203  in Fujitsu Ltd ADR on May 6, 2025 and sell it today you would earn a total of  67.00  from holding Fujitsu Ltd ADR or generate 3.04% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Toshiba  vs.  Fujitsu Ltd ADR

Toshiba

Risk-Adjusted Performance

Very Weak

Over the last 90 days Toshiba has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable fundamental drivers, Toshiba is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Fujitsu Ltd ADR

Risk-Adjusted Performance

Weak

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

Pair Trading with Toshiba and Fujitsu

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

The idea behind Toshiba and Fujitsu Ltd ADR 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.

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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.