Correlation Between Japan Asia and PUMA SE
Can any of the company-specific risk be diversified away by investing in both Japan Asia and PUMA SE 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 PUMA SE 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 PUMA SE, you can compare the effects of market volatilities on Japan Asia and PUMA SE 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 PUMA SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Japan Asia and PUMA SE.
Diversification Opportunities for Japan Asia and PUMA SE
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Japan and PUMA is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Japan Asia Investment and PUMA SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PUMA SE 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 PUMA SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PUMA SE has no effect on the direction of Japan Asia i.e., Japan Asia and PUMA SE go up and down completely randomly.
Pair Corralation between Japan Asia and PUMA SE
Assuming the 90 days horizon Japan Asia Investment is expected to under-perform the PUMA SE. But the stock apears to be less risky and, when comparing its historical volatility, Japan Asia Investment is 1.06 times less risky than PUMA SE. The stock trades about 0.0 of its potential returns per unit of risk. The PUMA SE is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 3,913 in PUMA SE on September 3, 2024 and sell it today you would earn a total of 500.00 from holding PUMA SE or generate 12.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Japan Asia Investment vs. PUMA SE
Performance |
| Timeline |
| Japan Asia Investment |
| PUMA SE |
Japan Asia and PUMA SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Japan Asia and PUMA SE
The main advantage of trading using opposite Japan Asia and PUMA SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Japan Asia position performs unexpectedly, PUMA SE 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 PUMA SE will offset losses from the drop in PUMA SE's long position.| Japan Asia vs. Blackstone Group | Japan Asia vs. BlackRock | Japan Asia vs. The Bank of | Japan Asia vs. Ameriprise Financial |
| PUMA SE vs. BII Railway Transportation | PUMA SE vs. SEI INVESTMENTS | PUMA SE vs. Ming Le Sports | PUMA SE 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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