Correlation Between Japan Post and GRIFFIN MINING
Can any of the company-specific risk be diversified away by investing in both Japan Post and GRIFFIN MINING 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 GRIFFIN MINING 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 GRIFFIN MINING LTD, you can compare the effects of market volatilities on Japan Post and GRIFFIN MINING 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 GRIFFIN MINING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Japan Post and GRIFFIN MINING.
Diversification Opportunities for Japan Post and GRIFFIN MINING
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Japan and GRIFFIN is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Japan Post Insurance and GRIFFIN MINING LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GRIFFIN MINING LTD 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 GRIFFIN MINING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GRIFFIN MINING LTD has no effect on the direction of Japan Post i.e., Japan Post and GRIFFIN MINING go up and down completely randomly.
Pair Corralation between Japan Post and GRIFFIN MINING
Assuming the 90 days trading horizon Japan Post Insurance is expected to generate 0.9 times more return on investment than GRIFFIN MINING. However, Japan Post Insurance is 1.11 times less risky than GRIFFIN MINING. It trades about 0.09 of its potential returns per unit of risk. GRIFFIN MINING LTD is currently generating about 0.06 per unit of risk. If you would invest 1,720 in Japan Post Insurance on August 28, 2024 and sell it today you would earn a total of 190.00 from holding Japan Post Insurance or generate 11.05% 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. GRIFFIN MINING LTD
Performance |
| Timeline |
| Japan Post Insurance |
| GRIFFIN MINING LTD |
Japan Post and GRIFFIN MINING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Japan Post and GRIFFIN MINING
The main advantage of trading using opposite Japan Post and GRIFFIN MINING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Japan Post position performs unexpectedly, GRIFFIN MINING 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 GRIFFIN MINING will offset losses from the drop in GRIFFIN MINING's long position.| Japan Post vs. CONAGRA FOODS | Japan Post vs. Dairy Farm International | Japan Post vs. Mitsui Chemicals | Japan Post vs. CHEMICAL INDUSTRIES |
| GRIFFIN MINING vs. Apple Inc | GRIFFIN MINING vs. Apple Inc | GRIFFIN MINING vs. Apple Inc | GRIFFIN MINING vs. Apple Inc |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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