Correlation Between Japan Post and ANTA SPORTS
Can any of the company-specific risk be diversified away by investing in both Japan Post and ANTA SPORTS 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 ANTA SPORTS 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 ANTA SPORTS PRODUCT, you can compare the effects of market volatilities on Japan Post and ANTA SPORTS 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 ANTA SPORTS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Japan Post and ANTA SPORTS.
Diversification Opportunities for Japan Post and ANTA SPORTS
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Japan and ANTA is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Japan Post Insurance and ANTA SPORTS PRODUCT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ANTA SPORTS PRODUCT 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 ANTA SPORTS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ANTA SPORTS PRODUCT has no effect on the direction of Japan Post i.e., Japan Post and ANTA SPORTS go up and down completely randomly.
Pair Corralation between Japan Post and ANTA SPORTS
Assuming the 90 days trading horizon Japan Post is expected to generate 2.19 times less return on investment than ANTA SPORTS. But when comparing it to its historical volatility, Japan Post Insurance is 1.6 times less risky than ANTA SPORTS. It trades about 0.04 of its potential returns per unit of risk. ANTA SPORTS PRODUCT is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 659.00 in ANTA SPORTS PRODUCT on September 4, 2024 and sell it today you would earn a total of 284.00 from holding ANTA SPORTS PRODUCT or generate 43.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Japan Post Insurance vs. ANTA SPORTS PRODUCT
Performance |
| Timeline |
| Japan Post Insurance |
| ANTA SPORTS PRODUCT |
Japan Post and ANTA SPORTS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Japan Post and ANTA SPORTS
The main advantage of trading using opposite Japan Post and ANTA SPORTS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Japan Post position performs unexpectedly, ANTA SPORTS 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 ANTA SPORTS will offset losses from the drop in ANTA SPORTS's long position.| Japan Post vs. Harmony Gold Mining | Japan Post vs. LION ONE METALS | Japan Post vs. QBE Insurance Group | Japan Post vs. GREENX METALS LTD |
| ANTA SPORTS vs. ECHO INVESTMENT ZY | ANTA SPORTS vs. SLR Investment Corp | ANTA SPORTS vs. Wyndham Hotels Resorts | ANTA SPORTS vs. Pembina Pipeline 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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