Correlation Between Japan Post and Galleon Gold
Can any of the company-specific risk be diversified away by investing in both Japan Post and Galleon 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 Galleon 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 Galleon Gold Corp, you can compare the effects of market volatilities on Japan Post and Galleon 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 Galleon Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Japan Post and Galleon Gold.
Diversification Opportunities for Japan Post and Galleon Gold
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Japan and Galleon is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Japan Post Holdings and Galleon Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Galleon Gold Corp 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 Galleon Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Galleon Gold Corp has no effect on the direction of Japan Post i.e., Japan Post and Galleon Gold go up and down completely randomly.
Pair Corralation between Japan Post and Galleon Gold
Assuming the 90 days horizon Japan Post Holdings is expected to under-perform the Galleon Gold. In addition to that, Japan Post is 11.08 times more volatile than Galleon Gold Corp. It trades about -0.12 of its total potential returns per unit of risk. Galleon Gold Corp is currently generating about 0.03 per unit of volatility. If you would invest 14.00 in Galleon Gold Corp on August 30, 2024 and sell it today you would lose (1.00) from holding Galleon Gold Corp or give up 7.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 35.15% |
| Values | Daily Returns |
Japan Post Holdings vs. Galleon Gold Corp
Performance |
| Timeline |
| Japan Post Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Galleon Gold Corp |
Japan Post and Galleon Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Japan Post and Galleon Gold
The main advantage of trading using opposite Japan Post and Galleon Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Japan Post position performs unexpectedly, Galleon 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 Galleon Gold will offset losses from the drop in Galleon 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, |
| Galleon Gold vs. Aurion Resources | Galleon Gold vs. Rio2 Limited | Galleon Gold vs. Minera Alamos | Galleon Gold vs. I 80 Gold 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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