Correlation Between Japan Post and Gold
Can any of the company-specific risk be diversified away by investing in both Japan Post and Gold 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 Gold 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 Gold And Gemstone, you can compare the effects of market volatilities on Japan Post and Gold 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 Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Japan Post and Gold.
Diversification Opportunities for Japan Post and Gold
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Japan and Gold is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Japan Post Holdings and Gold And Gemstone in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gold And Gemstone 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 Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gold And Gemstone has no effect on the direction of Japan Post i.e., Japan Post and Gold go up and down completely randomly.
Pair Corralation between Japan Post and Gold
Assuming the 90 days horizon Japan Post Holdings is expected to generate 0.5 times more return on investment than Gold. However, Japan Post Holdings is 2.01 times less risky than Gold. It trades about 0.18 of its potential returns per unit of risk. Gold And Gemstone is currently generating about 0.06 per unit of risk. If you would invest 906.00 in Japan Post Holdings on August 25, 2024 and sell it today you would earn a total of 130.00 from holding Japan Post Holdings or generate 14.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 6.09% |
| Values | Daily Returns |
Japan Post Holdings vs. Gold And Gemstone
Performance |
| Timeline |
| Japan Post Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Gold And Gemstone |
Japan Post and Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Japan Post and Gold
The main advantage of trading using opposite Japan Post and Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Japan Post position performs unexpectedly, Gold 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 Gold will offset losses from the drop in Gold's 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, |
| Gold vs. Ascendant Resources | Gold vs. Cantex Mine Development | Gold vs. Amarc Resources | Gold vs. Sterling Metals Corp |
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 CEOs Directory module to screen CEOs from public companies around the world.
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