Correlation Between JAPAN POST and Sysmex
Can any of the company-specific risk be diversified away by investing in both JAPAN POST and Sysmex 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 Sysmex into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JAPAN POST BANK and Sysmex, you can compare the effects of market volatilities on JAPAN POST and Sysmex 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 Sysmex. Check out your portfolio center. Please also check ongoing floating volatility patterns of JAPAN POST and Sysmex.
Diversification Opportunities for JAPAN POST and Sysmex
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between JAPAN and Sysmex is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding JAPAN POST BANK and Sysmex in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sysmex 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 BANK are associated (or correlated) with Sysmex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sysmex has no effect on the direction of JAPAN POST i.e., JAPAN POST and Sysmex go up and down completely randomly.
Pair Corralation between JAPAN POST and Sysmex
Assuming the 90 days horizon JAPAN POST is expected to generate 38.78 times less return on investment than Sysmex. But when comparing it to its historical volatility, JAPAN POST BANK is 26.33 times less risky than Sysmex. It trades about 0.06 of its potential returns per unit of risk. Sysmex is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 5,921 in Sysmex on August 31, 2024 and sell it today you would lose (3,908) from holding Sysmex or give up 66.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 63.73% |
| Values | Daily Returns |
JAPAN POST BANK vs. Sysmex
Performance |
| Timeline |
| JAPAN POST BANK |
| Sysmex |
JAPAN POST and Sysmex Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JAPAN POST and Sysmex
The main advantage of trading using opposite JAPAN POST and Sysmex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JAPAN POST position performs unexpectedly, Sysmex 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 Sysmex will offset losses from the drop in Sysmex's long position.| JAPAN POST vs. Bank Mandiri Persero | JAPAN POST vs. Piraeus Bank SA | JAPAN POST vs. Eurobank Ergasias Services | JAPAN POST vs. Kasikornbank Public Co |
| Sysmex vs. Intuitive Surgical | Sysmex vs. Merit Medical Systems | Sysmex vs. Carl Zeiss Meditec | Sysmex vs. Sartorius Aktiengesellschaft |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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