Correlation Between Commercial International and Aozora Bank
Can any of the company-specific risk be diversified away by investing in both Commercial International and Aozora Bank 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 Commercial International and Aozora Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Commercial International Bank and Aozora Bank, you can compare the effects of market volatilities on Commercial International and Aozora Bank 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 Commercial International with a short position of Aozora Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Commercial International and Aozora Bank.
Diversification Opportunities for Commercial International and Aozora Bank
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Commercial and Aozora is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Commercial International Bank and Aozora Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aozora Bank and Commercial International 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 Commercial International Bank are associated (or correlated) with Aozora Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aozora Bank has no effect on the direction of Commercial International i.e., Commercial International and Aozora Bank go up and down completely randomly.
Pair Corralation between Commercial International and Aozora Bank
If you would invest 144.00 in Commercial International Bank on November 4, 2024 and sell it today you would earn a total of 1.00 from holding Commercial International Bank or generate 0.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 5.0% |
| Values | Daily Returns |
Commercial International Bank vs. Aozora Bank
Performance |
| Timeline |
| Commercial International |
| Aozora Bank |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Commercial International and Aozora Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Commercial International and Aozora Bank
The main advantage of trading using opposite Commercial International and Aozora Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Commercial International position performs unexpectedly, Aozora Bank 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 Aozora Bank will offset losses from the drop in Aozora Bank's long position.| Commercial International vs. Bank Mandiri Persero | Commercial International vs. Turkiye Garanti Bankasi | Commercial International vs. BOC Hong Kong | Commercial International vs. Hang Seng Bank |
| Aozora Bank vs. Amkor Technology | Aozora Bank vs. Lindblad Expeditions Holdings | Aozora Bank vs. Norfolk Southern | Aozora Bank vs. Olympic Steel |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |