Correlation Between Japan Post and SwissCom
Can any of the company-specific risk be diversified away by investing in both Japan Post and SwissCom 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 SwissCom 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 SwissCom AG, you can compare the effects of market volatilities on Japan Post and SwissCom 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 SwissCom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Japan Post and SwissCom.
Diversification Opportunities for Japan Post and SwissCom
-0.95 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Japan and SwissCom is -0.95. Overlapping area represents the amount of risk that can be diversified away by holding Japan Post Holdings and SwissCom AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SwissCom 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 SwissCom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SwissCom AG has no effect on the direction of Japan Post i.e., Japan Post and SwissCom go up and down completely randomly.
Pair Corralation between Japan Post and SwissCom
Assuming the 90 days horizon Japan Post Holdings is expected to generate 6.18 times more return on investment than SwissCom. However, Japan Post is 6.18 times more volatile than SwissCom AG. It trades about 0.1 of its potential returns per unit of risk. SwissCom AG is currently generating about 0.02 per unit of risk. If you would invest 991.00 in Japan Post Holdings on August 25, 2024 and sell it today you would earn a total of 45.00 from holding Japan Post Holdings or generate 4.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 5.26% |
| Values | Daily Returns |
Japan Post Holdings vs. SwissCom AG
Performance |
| Timeline |
| Japan Post Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| SwissCom AG |
Japan Post and SwissCom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Japan Post and SwissCom
The main advantage of trading using opposite Japan Post and SwissCom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Japan Post position performs unexpectedly, SwissCom 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 SwissCom will offset losses from the drop in SwissCom'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, |
| SwissCom vs. HUMANA INC | SwissCom vs. SCOR PK | SwissCom vs. Aquagold International | SwissCom vs. Barloworld Ltd ADR |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |