Correlation Between Japan Post and Hugo Boss
Can any of the company-specific risk be diversified away by investing in both Japan Post and Hugo Boss 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 Post and Hugo Boss into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Japan Post Holdings and Hugo Boss AG, you can compare the effects of market volatilities on Japan Post and Hugo Boss 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 Post with a short position of Hugo Boss. Check out your portfolio center. Please also check ongoing floating volatility patterns of Japan Post and Hugo Boss.
Diversification Opportunities for Japan Post and Hugo Boss
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Japan and Hugo is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Japan Post Holdings and Hugo Boss AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hugo Boss AG and Japan Post 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 Post Holdings are associated (or correlated) with Hugo Boss. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hugo Boss AG has no effect on the direction of Japan Post i.e., Japan Post and Hugo Boss go up and down completely randomly.
Pair Corralation between Japan Post and Hugo Boss
Assuming the 90 days horizon Japan Post Holdings is expected to generate 2.18 times more return on investment than Hugo Boss. However, Japan Post is 2.18 times more volatile than Hugo Boss AG. It trades about 0.22 of its potential returns per unit of risk. Hugo Boss AG is currently generating about -0.04 per unit of risk. If you would invest 868.00 in Japan Post Holdings on September 14, 2024 and sell it today you would earn a total of 168.00 from holding Japan Post Holdings or generate 19.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 5.81% |
| Values | Daily Returns |
Japan Post Holdings vs. Hugo Boss AG
Performance |
| Timeline |
| Japan Post Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Hugo Boss AG |
Japan Post and Hugo Boss Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Japan Post and Hugo Boss
The main advantage of trading using opposite Japan Post and Hugo Boss positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Japan Post position performs unexpectedly, Hugo Boss 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 Hugo Boss will offset losses from the drop in Hugo Boss' long position.| Japan Post vs. Huntington Bancshares Incorporated | Japan Post vs. Fifth Third Bancorp | Japan Post vs. MT Bank | Japan Post vs. Citizens Financial Group, |
| Hugo Boss vs. VF Corporation | Hugo Boss vs. Levi Strauss Co | Hugo Boss vs. Under Armour C | Hugo Boss vs. Under Armour A |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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