Correlation Between Postal Savings and Casio Computer
Can any of the company-specific risk be diversified away by investing in both Postal Savings and Casio Computer 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 Postal Savings and Casio Computer into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Postal Savings Bank and Casio Computer CoLtd, you can compare the effects of market volatilities on Postal Savings and Casio Computer 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 Postal Savings with a short position of Casio Computer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Postal Savings and Casio Computer.
Diversification Opportunities for Postal Savings and Casio Computer
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Postal and Casio is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Postal Savings Bank and Casio Computer CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Casio Computer CoLtd and Postal Savings 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 Postal Savings Bank are associated (or correlated) with Casio Computer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Casio Computer CoLtd has no effect on the direction of Postal Savings i.e., Postal Savings and Casio Computer go up and down completely randomly.
Pair Corralation between Postal Savings and Casio Computer
Assuming the 90 days horizon Postal Savings Bank is expected to generate 4.67 times more return on investment than Casio Computer. However, Postal Savings is 4.67 times more volatile than Casio Computer CoLtd. It trades about 0.08 of its potential returns per unit of risk. Casio Computer CoLtd is currently generating about -0.04 per unit of risk. If you would invest 8.05 in Postal Savings Bank on August 31, 2024 and sell it today you would earn a total of 44.95 from holding Postal Savings Bank or generate 558.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Postal Savings Bank vs. Casio Computer CoLtd
Performance |
| Timeline |
| Postal Savings Bank |
| Casio Computer CoLtd |
Postal Savings and Casio Computer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Postal Savings and Casio Computer
The main advantage of trading using opposite Postal Savings and Casio Computer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Postal Savings position performs unexpectedly, Casio Computer 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 Casio Computer will offset losses from the drop in Casio Computer's long position.| Postal Savings vs. ANTA SPORTS PRODUCT | Postal Savings vs. USWE SPORTS AB | Postal Savings vs. PARKEN Sport Entertainment | Postal Savings vs. ADRIATIC METALS LS 013355 |
| Casio Computer vs. ADRIATIC METALS LS 013355 | Casio Computer vs. JAPAN TOBACCO UNSPADR12 | Casio Computer vs. Brockhaus Capital Management | Casio Computer vs. Ares Management 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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |