Correlation Between SQUIRREL MEDIA and Japan Tobacco
Can any of the company-specific risk be diversified away by investing in both SQUIRREL MEDIA and Japan Tobacco 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 SQUIRREL MEDIA and Japan Tobacco into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SQUIRREL MEDIA SA and Japan Tobacco, you can compare the effects of market volatilities on SQUIRREL MEDIA and Japan Tobacco 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 SQUIRREL MEDIA with a short position of Japan Tobacco. Check out your portfolio center. Please also check ongoing floating volatility patterns of SQUIRREL MEDIA and Japan Tobacco.
Diversification Opportunities for SQUIRREL MEDIA and Japan Tobacco
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between SQUIRREL and Japan is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding SQUIRREL MEDIA SA and Japan Tobacco in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Japan Tobacco and SQUIRREL MEDIA 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 SQUIRREL MEDIA SA are associated (or correlated) with Japan Tobacco. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Japan Tobacco has no effect on the direction of SQUIRREL MEDIA i.e., SQUIRREL MEDIA and Japan Tobacco go up and down completely randomly.
Pair Corralation between SQUIRREL MEDIA and Japan Tobacco
Assuming the 90 days horizon SQUIRREL MEDIA SA is expected to under-perform the Japan Tobacco. In addition to that, SQUIRREL MEDIA is 1.46 times more volatile than Japan Tobacco. It trades about -0.04 of its total potential returns per unit of risk. Japan Tobacco is currently generating about 0.04 per unit of volatility. If you would invest 1,885 in Japan Tobacco on October 12, 2024 and sell it today you would earn a total of 508.00 from holding Japan Tobacco or generate 26.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SQUIRREL MEDIA SA vs. Japan Tobacco
Performance |
| Timeline |
| SQUIRREL MEDIA SA |
| Japan Tobacco |
SQUIRREL MEDIA and Japan Tobacco Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SQUIRREL MEDIA and Japan Tobacco
The main advantage of trading using opposite SQUIRREL MEDIA and Japan Tobacco positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SQUIRREL MEDIA position performs unexpectedly, Japan Tobacco 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 Tobacco will offset losses from the drop in Japan Tobacco's long position.| SQUIRREL MEDIA vs. MOVIE GAMES SA | SQUIRREL MEDIA vs. DETALION GAMES SA | SQUIRREL MEDIA vs. SOCKET MOBILE NEW | SQUIRREL MEDIA vs. BRAGG GAMING GRP |
| Japan Tobacco vs. SQUIRREL MEDIA SA | Japan Tobacco vs. PT Steel Pipe | Japan Tobacco vs. Hollywood Bowl Group | Japan Tobacco vs. PARKEN Sport Entertainment |
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 Directory module to find actively traded commodities issued by global exchanges.
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