Correlation Between Japan Post and CCL Industries
Can any of the company-specific risk be diversified away by investing in both Japan Post and CCL Industries 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 CCL Industries 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 CCL Industries, you can compare the effects of market volatilities on Japan Post and CCL Industries 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 CCL Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Japan Post and CCL Industries.
Diversification Opportunities for Japan Post and CCL Industries
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Japan and CCL is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Japan Post Holdings and CCL Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CCL Industries 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 CCL Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CCL Industries has no effect on the direction of Japan Post i.e., Japan Post and CCL Industries go up and down completely randomly.
Pair Corralation between Japan Post and CCL Industries
If you would invest 1,036 in Japan Post Holdings on August 30, 2024 and sell it today you would earn a total of 0.00 from holding Japan Post Holdings or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 2.33% |
| Values | Daily Returns |
Japan Post Holdings vs. CCL Industries
Performance |
| Timeline |
| Japan Post Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| CCL Industries |
Japan Post and CCL Industries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Japan Post and CCL Industries
The main advantage of trading using opposite Japan Post and CCL Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Japan Post position performs unexpectedly, CCL Industries 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 CCL Industries will offset losses from the drop in CCL Industries' 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, |
| CCL Industries vs. Myers Industries | CCL Industries vs. Silgan Holdings | CCL Industries vs. Pactiv Evergreen | CCL Industries vs. Reynolds Consumer Products |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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