Correlation Between Japan Post and Airbus SE
Can any of the company-specific risk be diversified away by investing in both Japan Post and Airbus SE 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 Japan Post and Airbus SE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Japan Post Insurance and Airbus SE, you can compare the effects of market volatilities on Japan Post and Airbus SE 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 Japan Post with a short position of Airbus SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Japan Post and Airbus SE.
Diversification Opportunities for Japan Post and Airbus SE
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Japan and Airbus is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Japan Post Insurance and Airbus SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Airbus SE and Japan Post 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 Japan Post Insurance are associated (or correlated) with Airbus SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Airbus SE has no effect on the direction of Japan Post i.e., Japan Post and Airbus SE go up and down completely randomly.
Pair Corralation between Japan Post and Airbus SE
Assuming the 90 days trading horizon Japan Post Insurance is expected to under-perform the Airbus SE. In addition to that, Japan Post is 1.6 times more volatile than Airbus SE. It trades about -0.2 of its total potential returns per unit of risk. Airbus SE is currently generating about 0.0 per unit of volatility. If you would invest 3,920 in Airbus SE on October 14, 2024 and sell it today you would earn a total of 0.00 from holding Airbus SE or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Japan Post Insurance vs. Airbus SE
Performance |
| Timeline |
| Japan Post Insurance |
| Airbus SE |
Japan Post and Airbus SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Japan Post and Airbus SE
The main advantage of trading using opposite Japan Post and Airbus SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Japan Post position performs unexpectedly, Airbus SE 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 Airbus SE will offset losses from the drop in Airbus SE's long position.| Japan Post vs. LANDSEA GREEN MANAGEMENT | Japan Post vs. Cleanaway Waste Management | Japan Post vs. COFCO Joycome Foods | Japan Post vs. Siamgas And Petrochemicals |
| Airbus SE vs. FUYO GENERAL LEASE | Airbus SE vs. Goosehead Insurance | Airbus SE vs. REVO INSURANCE SPA | Airbus SE vs. Japan Post Insurance |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |