Correlation Between Caixabank and JAPAN POST
Can any of the company-specific risk be diversified away by investing in both Caixabank and JAPAN POST 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 Caixabank and JAPAN POST into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Caixabank SA ADR and JAPAN POST BANK, you can compare the effects of market volatilities on Caixabank and JAPAN POST 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 Caixabank with a short position of JAPAN POST. Check out your portfolio center. Please also check ongoing floating volatility patterns of Caixabank and JAPAN POST.
Diversification Opportunities for Caixabank and JAPAN POST
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Caixabank and JAPAN is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Caixabank SA ADR and JAPAN POST BANK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JAPAN POST BANK and Caixabank 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 Caixabank SA ADR are associated (or correlated) with JAPAN POST. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JAPAN POST BANK has no effect on the direction of Caixabank i.e., Caixabank and JAPAN POST go up and down completely randomly.
Pair Corralation between Caixabank and JAPAN POST
If you would invest 175.00 in Caixabank SA ADR on November 3, 2024 and sell it today you would earn a total of 25.00 from holding Caixabank SA ADR or generate 14.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 91.3% |
| Values | Daily Returns |
Caixabank SA ADR vs. JAPAN POST BANK
Performance |
| Timeline |
| Caixabank SA ADR |
| JAPAN POST BANK |
Caixabank and JAPAN POST Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Caixabank and JAPAN POST
The main advantage of trading using opposite Caixabank and JAPAN POST positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Caixabank position performs unexpectedly, JAPAN POST 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 JAPAN POST will offset losses from the drop in JAPAN POST's long position.| Caixabank vs. Permanent TSB Group | Caixabank vs. Bank of Botetourt | Caixabank vs. Cashmere Valley Bank | Caixabank vs. Oak Valley Bancorp |
| JAPAN POST vs. JAPAN POST BANK | JAPAN POST vs. Bankinter SA ADR | JAPAN POST vs. First Horizon | JAPAN POST vs. CaixaBank SA |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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