Correlation Between Jardine Matheson and Mitsui
Can any of the company-specific risk be diversified away by investing in both Jardine Matheson and Mitsui 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 Jardine Matheson and Mitsui into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jardine Matheson Holdings and Mitsui Company, you can compare the effects of market volatilities on Jardine Matheson and Mitsui 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 Jardine Matheson with a short position of Mitsui. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jardine Matheson and Mitsui.
Diversification Opportunities for Jardine Matheson and Mitsui
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Jardine and Mitsui is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Jardine Matheson Holdings and Mitsui Company in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mitsui Company and Jardine Matheson 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 Jardine Matheson Holdings are associated (or correlated) with Mitsui. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mitsui Company has no effect on the direction of Jardine Matheson i.e., Jardine Matheson and Mitsui go up and down completely randomly.
Pair Corralation between Jardine Matheson and Mitsui
If you would invest (100.00) in Mitsui Company on January 15, 2025 and sell it today you would earn a total of 100.00 from holding Mitsui Company or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Jardine Matheson Holdings vs. Mitsui Company
Performance |
| Timeline |
| Jardine Matheson Holdings |
| Mitsui Company |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Jardine Matheson and Mitsui Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jardine Matheson and Mitsui
The main advantage of trading using opposite Jardine Matheson and Mitsui positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jardine Matheson position performs unexpectedly, Mitsui 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 Mitsui will offset losses from the drop in Mitsui's long position.| Jardine Matheson vs. Swire Pacific Ltd | Jardine Matheson vs. CITIC Limited | Jardine Matheson vs. Fosun International | Jardine Matheson vs. Cibl Inc |
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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