Correlation Between Japan Post and Regulus Resources
Can any of the company-specific risk be diversified away by investing in both Japan Post and Regulus Resources 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 Regulus Resources 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 Regulus Resources, you can compare the effects of market volatilities on Japan Post and Regulus Resources 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 Regulus Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Japan Post and Regulus Resources.
Diversification Opportunities for Japan Post and Regulus Resources
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Japan and Regulus is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Japan Post Holdings and Regulus Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Regulus Resources 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 Regulus Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Regulus Resources has no effect on the direction of Japan Post i.e., Japan Post and Regulus Resources go up and down completely randomly.
Pair Corralation between Japan Post and Regulus Resources
Assuming the 90 days horizon Japan Post Holdings is expected to under-perform the Regulus Resources. In addition to that, Japan Post is 16.2 times more volatile than Regulus Resources. It trades about -0.12 of its total potential returns per unit of risk. Regulus Resources is currently generating about 0.07 per unit of volatility. If you would invest 50.00 in Regulus Resources on August 25, 2024 and sell it today you would earn a total of 88.00 from holding Regulus Resources or generate 176.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 35.81% |
| Values | Daily Returns |
Japan Post Holdings vs. Regulus Resources
Performance |
| Timeline |
| Japan Post Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Regulus Resources |
Japan Post and Regulus Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Japan Post and Regulus Resources
The main advantage of trading using opposite Japan Post and Regulus Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Japan Post position performs unexpectedly, Regulus Resources 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 Regulus Resources will offset losses from the drop in Regulus Resources' 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, |
| Regulus Resources vs. Ascendant Resources | Regulus Resources vs. Cantex Mine Development | Regulus Resources vs. Amarc Resources | Regulus Resources 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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