Correlation Between Japan Post and MCEWEN MINING
Can any of the company-specific risk be diversified away by investing in both Japan Post and MCEWEN 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 MCEWEN 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 MCEWEN MINING INC, you can compare the effects of market volatilities on Japan Post and MCEWEN 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 MCEWEN MINING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Japan Post and MCEWEN MINING.
Diversification Opportunities for Japan Post and MCEWEN MINING
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Japan and MCEWEN is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Japan Post Insurance and MCEWEN MINING INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MCEWEN MINING INC 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 MCEWEN MINING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MCEWEN MINING INC has no effect on the direction of Japan Post i.e., Japan Post and MCEWEN MINING go up and down completely randomly.
Pair Corralation between Japan Post and MCEWEN MINING
Assuming the 90 days trading horizon Japan Post Insurance is expected to generate 0.62 times more return on investment than MCEWEN MINING. However, Japan Post Insurance is 1.6 times less risky than MCEWEN MINING. It trades about 0.53 of its potential returns per unit of risk. MCEWEN MINING INC is currently generating about -0.2 per unit of risk. If you would invest 1,500 in Japan Post Insurance on September 1, 2024 and sell it today you would earn a total of 460.00 from holding Japan Post Insurance or generate 30.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Japan Post Insurance vs. MCEWEN MINING INC
Performance |
| Timeline |
| Japan Post Insurance |
| MCEWEN MINING INC |
Japan Post and MCEWEN MINING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Japan Post and MCEWEN MINING
The main advantage of trading using opposite Japan Post and MCEWEN MINING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Japan Post position performs unexpectedly, MCEWEN 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 MCEWEN MINING will offset losses from the drop in MCEWEN MINING's long position.| Japan Post vs. Algonquin Power Utilities | Japan Post vs. Goodyear Tire Rubber | Japan Post vs. Caseys General Stores | Japan Post vs. Materialise NV |
| MCEWEN MINING vs. COMMERCIAL VEHICLE | MCEWEN MINING vs. Pick n Pay | MCEWEN MINING vs. PICKN PAY STORES | MCEWEN MINING vs. Commercial Vehicle Group |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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