Correlation Between Panasonic Corp and Global Net
Can any of the company-specific risk be diversified away by investing in both Panasonic Corp and Global Net 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 Panasonic Corp and Global Net into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Panasonic Corp and Global Net Lease, you can compare the effects of market volatilities on Panasonic Corp and Global Net 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 Panasonic Corp with a short position of Global Net. Check out your portfolio center. Please also check ongoing floating volatility patterns of Panasonic Corp and Global Net.
Diversification Opportunities for Panasonic Corp and Global Net
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Panasonic and Global is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Panasonic Corp and Global Net Lease in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Net Lease and Panasonic Corp 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 Panasonic Corp are associated (or correlated) with Global Net. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Net Lease has no effect on the direction of Panasonic Corp i.e., Panasonic Corp and Global Net go up and down completely randomly.
Pair Corralation between Panasonic Corp and Global Net
Assuming the 90 days trading horizon Panasonic Corp is expected to generate 0.4 times more return on investment than Global Net. However, Panasonic Corp is 2.48 times less risky than Global Net. It trades about 0.05 of its potential returns per unit of risk. Global Net Lease is currently generating about 0.01 per unit of risk. If you would invest 110,168 in Panasonic Corp on August 27, 2024 and sell it today you would earn a total of 44,932 from holding Panasonic Corp or generate 40.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 91.72% |
| Values | Daily Returns |
Panasonic Corp vs. Global Net Lease
Performance |
| Timeline |
| Panasonic Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Strong
| Global Net Lease |
Panasonic Corp and Global Net Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Panasonic Corp and Global Net
The main advantage of trading using opposite Panasonic Corp and Global Net positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Panasonic Corp position performs unexpectedly, Global Net 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 Global Net will offset losses from the drop in Global Net's long position.| Panasonic Corp vs. Catalyst Media Group | Panasonic Corp vs. CATLIN GROUP | Panasonic Corp vs. Tamburi Investment Partners | Panasonic Corp vs. Magnora ASA |
| Global Net vs. Samsung Electronics Co | Global Net vs. Samsung Electronics Co | Global Net vs. Hyundai Motor | Global Net vs. Toyota Motor Corp |
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 Stocks Directory module to find actively traded stocks across global markets.
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