Correlation Between Itochu Techno-Solutions and Bill Holdings

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Itochu Techno-Solutions and Bill Holdings 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 Itochu Techno-Solutions and Bill Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Itochu Techno-Solutions Corp and Bill Holdings, you can compare the effects of market volatilities on Itochu Techno-Solutions and Bill Holdings 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 Itochu Techno-Solutions with a short position of Bill Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Itochu Techno-Solutions and Bill Holdings.

Diversification Opportunities for Itochu Techno-Solutions and Bill Holdings

0.0
  Correlation Coefficient

Pay attention - limited upside

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

Pair Corralation between Itochu Techno-Solutions and Bill Holdings

If you would invest  13,881  in Bill Holdings on August 28, 2022 and sell it today you would lose (1,734)  from holding Bill Holdings or give up 12.49% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

Itochu Techno-Solutions Corp  vs.  Bill Holdings

 Performance (%) 
       Timeline  
Itochu Techno-Solutions 
Itochu Performance
0 of 100
Over the last 90 days Itochu Techno-Solutions Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Itochu Techno-Solutions is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.
Bill Holdings 
Bill Holdings Performance
0 of 100
Over the last 90 days Bill Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Even with sluggish performance in the last few months, the Stock's essential indicators remain relatively steady which may send shares a bit higher in December 2022. The new chaos may also be a sign of medium-term up-swing for the company stakeholders.

Bill Holdings Price Channel

Itochu Techno-Solutions and Bill Holdings Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Itochu Techno-Solutions and Bill Holdings

The main advantage of trading using opposite Itochu Techno-Solutions and Bill Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Itochu Techno-Solutions position performs unexpectedly, Bill Holdings 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 Bill Holdings will offset losses from the drop in Bill Holdings' long position.
The effect of pair diversification on risk is to reduce it, but we should note this doesn't apply to all risk types. When we trade pairs against Itochu Techno-Solutions as a counterpart, there is always some inherent risk that will never be diversified away no matter what. This volatility limits the effect of tactical diversification using pair trading. Itochu Techno-Solutions' systematic risk is the inherent uncertainty of the entire market, and therefore cannot be mitigated even by pair-trading it against the equity that is not highly correlated to it. On the other hand, Itochu Techno-Solutions' unsystematic risk describes the types of risk that we can protect against, at least to some degree, by selecting a matching pair that is not perfectly correlated to Itochu Techno-Solutions Corp.
The idea behind Itochu Techno-Solutions Corp and Bill Holdings 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.
Bill Holdings vs. Salesforce
Bill Holdings vs. Autodesk
Bill Holdings vs. Intuit Inc
Bill Holdings vs. Servicenow
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.

Other Complementary Tools

Options Analysis
Analyze and evaluate options and option chains as a potential hedge for your portfolios
Go
Headlines Timeline
Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity
Go
Price Transformation
Use Price Transformation models to analyze depth of different equity instruments across global markets
Go
Watchlist Optimization
Optimize watchlists to build efficient portfolio or rebalance existing positions based on mean-variance optimization algorithm
Go
Analyst Recommendations
Analyst recommendations and target price estimates broken down by several categories
Go
Global Markets Map
Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes
Go
Insider Screener
Find insiders across different sectors to evaluate their impact on performance
Go
Analyst Recommendations
Analyst recommendations and target price estimates broken down by several categories
Go