Correlation Between Gold Road and Japan Post
Can any of the company-specific risk be diversified away by investing in both Gold Road 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 Gold Road and Japan Post into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gold Road Resources and Japan Post Insurance, you can compare the effects of market volatilities on Gold Road 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 Gold Road with a short position of Japan Post. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gold Road and Japan Post.
Diversification Opportunities for Gold Road and Japan Post
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Gold and Japan is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Gold Road Resources and Japan Post Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Japan Post Insurance and Gold Road 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 Gold Road Resources 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 Insurance has no effect on the direction of Gold Road i.e., Gold Road and Japan Post go up and down completely randomly.
Pair Corralation between Gold Road and Japan Post
Assuming the 90 days horizon Gold Road Resources is expected to generate 1.11 times more return on investment than Japan Post. However, Gold Road is 1.11 times more volatile than Japan Post Insurance. It trades about 0.08 of its potential returns per unit of risk. Japan Post Insurance is currently generating about 0.07 per unit of risk. If you would invest 96.00 in Gold Road Resources on September 3, 2024 and sell it today you would earn a total of 22.00 from holding Gold Road Resources or generate 22.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gold Road Resources vs. Japan Post Insurance
Performance |
| Timeline |
| Gold Road Resources |
| Japan Post Insurance |
Gold Road and Japan Post Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gold Road and Japan Post
The main advantage of trading using opposite Gold Road and Japan Post positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gold Road 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.| Gold Road vs. ZIJIN MINH UNSPADR20 | Gold Road vs. Barrick Gold | Gold Road vs. Superior Plus Corp | Gold Road vs. NMI Holdings |
| Japan Post vs. Entravision Communications | Japan Post vs. Spirent Communications plc | Japan Post vs. JSC Halyk bank | Japan Post vs. Chiba Bank |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Stocks Directory Find actively traded stocks across global markets | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |