Correlation Between Panasonic Corp and Goodwin PLC
Can any of the company-specific risk be diversified away by investing in both Panasonic Corp and Goodwin PLC 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 Goodwin PLC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Panasonic Corp and Goodwin PLC, you can compare the effects of market volatilities on Panasonic Corp and Goodwin PLC 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 Goodwin PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Panasonic Corp and Goodwin PLC.
Diversification Opportunities for Panasonic Corp and Goodwin PLC
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Panasonic and Goodwin is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Panasonic Corp and Goodwin PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goodwin PLC 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 Goodwin PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Goodwin PLC has no effect on the direction of Panasonic Corp i.e., Panasonic Corp and Goodwin PLC go up and down completely randomly.
Pair Corralation between Panasonic Corp and Goodwin PLC
Assuming the 90 days trading horizon Panasonic Corp is expected to generate 2.6 times less return on investment than Goodwin PLC. But when comparing it to its historical volatility, Panasonic Corp is 1.17 times less risky than Goodwin PLC. It trades about 0.04 of its potential returns per unit of risk. Goodwin PLC is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 300,119 in Goodwin PLC on September 3, 2024 and sell it today you would earn a total of 385,881 from holding Goodwin PLC or generate 128.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 89.96% |
| Values | Daily Returns |
Panasonic Corp vs. Goodwin PLC
Performance |
| Timeline |
| Panasonic Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Goodwin PLC |
Panasonic Corp and Goodwin PLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Panasonic Corp and Goodwin PLC
The main advantage of trading using opposite Panasonic Corp and Goodwin PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Panasonic Corp position performs unexpectedly, Goodwin PLC 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 Goodwin PLC will offset losses from the drop in Goodwin PLC's long position.| Panasonic Corp vs. Naked Wines plc | Panasonic Corp vs. Live Nation Entertainment | Panasonic Corp vs. Virgin Wines UK | Panasonic Corp vs. Young Cos Brewery |
| Goodwin PLC vs. MoneysupermarketCom Group PLC | Goodwin PLC vs. Applied Materials | Goodwin PLC vs. GoldMining | Goodwin PLC vs. Morgan Advanced Materials |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Global Correlations Find global opportunities by holding instruments from different markets |