Correlation Between Japan Post and MNB Holdings
Can any of the company-specific risk be diversified away by investing in both Japan Post and MNB Holdings 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 MNB Holdings 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 MNB Holdings Corp, you can compare the effects of market volatilities on Japan Post and MNB Holdings 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 MNB Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Japan Post and MNB Holdings.
Diversification Opportunities for Japan Post and MNB Holdings
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Japan and MNB is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Japan Post Holdings and MNB Holdings Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MNB Holdings 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 MNB Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MNB Holdings Corp has no effect on the direction of Japan Post i.e., Japan Post and MNB Holdings go up and down completely randomly.
Pair Corralation between Japan Post and MNB Holdings
Assuming the 90 days horizon Japan Post Holdings is expected to under-perform the MNB Holdings. In addition to that, Japan Post is 2.74 times more volatile than MNB Holdings Corp. It trades about -0.04 of its total potential returns per unit of risk. MNB Holdings Corp is currently generating about -0.06 per unit of volatility. If you would invest 2,400 in MNB Holdings Corp on August 31, 2024 and sell it today you would lose (25.00) from holding MNB Holdings Corp or give up 1.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Japan Post Holdings vs. MNB Holdings Corp
Performance |
| Timeline |
| Japan Post Holdings |
| MNB Holdings Corp |
Japan Post and MNB Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Japan Post and MNB Holdings
The main advantage of trading using opposite Japan Post and MNB Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Japan Post position performs unexpectedly, MNB Holdings 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 MNB Holdings will offset losses from the drop in MNB Holdings' long position.| Japan Post vs. Nmb Financial Corp | Japan Post vs. Bank Utica Ny | Japan Post vs. Auburn Bancorp | Japan Post vs. Permanent TSB Group |
| MNB Holdings vs. Bank Mandiri Persero | MNB Holdings vs. Piraeus Bank SA | MNB Holdings vs. Eurobank Ergasias Services | MNB Holdings vs. Kasikornbank Public Co |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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