Correlation Between Japan Asia and OAKTRSPECLENDNEW
Can any of the company-specific risk be diversified away by investing in both Japan Asia and OAKTRSPECLENDNEW 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 Asia and OAKTRSPECLENDNEW into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Japan Asia Investment and OAKTRSPECLENDNEW, you can compare the effects of market volatilities on Japan Asia and OAKTRSPECLENDNEW 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 Asia with a short position of OAKTRSPECLENDNEW. Check out your portfolio center. Please also check ongoing floating volatility patterns of Japan Asia and OAKTRSPECLENDNEW.
Diversification Opportunities for Japan Asia and OAKTRSPECLENDNEW
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Japan and OAKTRSPECLENDNEW is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Japan Asia Investment and OAKTRSPECLENDNEW in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OAKTRSPECLENDNEW and Japan Asia 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 Asia Investment are associated (or correlated) with OAKTRSPECLENDNEW. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OAKTRSPECLENDNEW has no effect on the direction of Japan Asia i.e., Japan Asia and OAKTRSPECLENDNEW go up and down completely randomly.
Pair Corralation between Japan Asia and OAKTRSPECLENDNEW
Assuming the 90 days horizon Japan Asia Investment is expected to generate 2.91 times more return on investment than OAKTRSPECLENDNEW. However, Japan Asia is 2.91 times more volatile than OAKTRSPECLENDNEW. It trades about 0.02 of its potential returns per unit of risk. OAKTRSPECLENDNEW is currently generating about -0.03 per unit of risk. If you would invest 135.00 in Japan Asia Investment on September 3, 2024 and sell it today you would lose (1.00) from holding Japan Asia Investment or give up 0.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Japan Asia Investment vs. OAKTRSPECLENDNEW
Performance |
| Timeline |
| Japan Asia Investment |
| OAKTRSPECLENDNEW |
Japan Asia and OAKTRSPECLENDNEW Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Japan Asia and OAKTRSPECLENDNEW
The main advantage of trading using opposite Japan Asia and OAKTRSPECLENDNEW positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Japan Asia position performs unexpectedly, OAKTRSPECLENDNEW 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 OAKTRSPECLENDNEW will offset losses from the drop in OAKTRSPECLENDNEW's long position.| Japan Asia vs. Blackstone Group | Japan Asia vs. BlackRock | Japan Asia vs. The Bank of | Japan Asia vs. Ameriprise Financial |
| OAKTRSPECLENDNEW vs. FANDIFI TECHNOLOGY P | OAKTRSPECLENDNEW vs. X FAB Silicon Foundries | OAKTRSPECLENDNEW vs. SMA Solar Technology | OAKTRSPECLENDNEW vs. Japan Asia Investment |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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