Correlation Between Materialise and Japan Post
Can any of the company-specific risk be diversified away by investing in both Materialise and Japan Post 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 Materialise and Japan Post into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Materialise NV and Japan Post Insurance, you can compare the effects of market volatilities on Materialise and Japan Post 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 Materialise with a short position of Japan Post. Check out your portfolio center. Please also check ongoing floating volatility patterns of Materialise and Japan Post.
Diversification Opportunities for Materialise and Japan Post
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Materialise and Japan is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Materialise NV and Japan Post Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Japan Post Insurance and Materialise 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 Materialise NV are associated (or correlated) with Japan Post. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Japan Post Insurance has no effect on the direction of Materialise i.e., Materialise and Japan Post go up and down completely randomly.
Pair Corralation between Materialise and Japan Post
Assuming the 90 days trading horizon Materialise NV is expected to under-perform the Japan Post. In addition to that, Materialise is 1.99 times more volatile than Japan Post Insurance. It trades about -0.01 of its total potential returns per unit of risk. Japan Post Insurance is currently generating about 0.03 per unit of volatility. If you would invest 1,590 in Japan Post Insurance on November 30, 2024 and sell it today you would earn a total of 250.00 from holding Japan Post Insurance or generate 15.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Materialise NV vs. Japan Post Insurance
Performance |
| Timeline |
| Materialise NV |
| Japan Post Insurance |
Materialise and Japan Post Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Materialise and Japan Post
The main advantage of trading using opposite Materialise and Japan Post positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Materialise position performs unexpectedly, Japan Post 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 Japan Post will offset losses from the drop in Japan Post's long position.| Materialise vs. GOME Retail Holdings | Materialise vs. Retail Estates NV | Materialise vs. VIVA WINE GROUP | Materialise vs. Treasury Wine Estates |
| Japan Post vs. AIR PRODCHEMICALS | Japan Post vs. Mitsui Chemicals | Japan Post vs. SEKISUI CHEMICAL | Japan Post vs. Sekisui Chemical Co |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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