Correlation Between COFCO Joycome and Japan Post
Can any of the company-specific risk be diversified away by investing in both COFCO Joycome 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 COFCO Joycome and Japan Post into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between COFCO Joycome Foods and Japan Post Insurance, you can compare the effects of market volatilities on COFCO Joycome 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 COFCO Joycome with a short position of Japan Post. Check out your portfolio center. Please also check ongoing floating volatility patterns of COFCO Joycome and Japan Post.
Diversification Opportunities for COFCO Joycome and Japan Post
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between COFCO and Japan is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding COFCO Joycome Foods 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 COFCO Joycome 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 COFCO Joycome Foods 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 COFCO Joycome i.e., COFCO Joycome and Japan Post go up and down completely randomly.
Pair Corralation between COFCO Joycome and Japan Post
Assuming the 90 days horizon COFCO Joycome Foods is expected to under-perform the Japan Post. In addition to that, COFCO Joycome is 1.64 times more volatile than Japan Post Insurance. It trades about -0.02 of its total potential returns per unit of risk. Japan Post Insurance is currently generating about 0.15 per unit of volatility. If you would invest 1,510 in Japan Post Insurance on October 29, 2024 and sell it today you would earn a total of 260.00 from holding Japan Post Insurance or generate 17.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
COFCO Joycome Foods vs. Japan Post Insurance
Performance |
| Timeline |
| COFCO Joycome Foods |
| Japan Post Insurance |
COFCO Joycome and Japan Post Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COFCO Joycome and Japan Post
The main advantage of trading using opposite COFCO Joycome and Japan Post positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COFCO Joycome 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.| COFCO Joycome vs. DEVRY EDUCATION GRP | COFCO Joycome vs. Xinhua Winshare Publishing | COFCO Joycome vs. Firan Technology Group | COFCO Joycome vs. DeVry Education Group |
| Japan Post vs. KINGBOARD CHEMICAL | Japan Post vs. Silicon Motion Technology | Japan Post vs. Spirent Communications plc | Japan Post vs. Shin Etsu 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |