Correlation Between Japan Vietnam and POST TELECOMMU
Can any of the company-specific risk be diversified away by investing in both Japan Vietnam and POST TELECOMMU 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 Vietnam and POST TELECOMMU into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Japan Vietnam Medical and POST TELECOMMU, you can compare the effects of market volatilities on Japan Vietnam and POST TELECOMMU 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 Vietnam with a short position of POST TELECOMMU. Check out your portfolio center. Please also check ongoing floating volatility patterns of Japan Vietnam and POST TELECOMMU.
Diversification Opportunities for Japan Vietnam and POST TELECOMMU
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Japan and POST is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Japan Vietnam Medical and POST TELECOMMU in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on POST TELECOMMU and Japan Vietnam 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 Vietnam Medical are associated (or correlated) with POST TELECOMMU. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of POST TELECOMMU has no effect on the direction of Japan Vietnam i.e., Japan Vietnam and POST TELECOMMU go up and down completely randomly.
Pair Corralation between Japan Vietnam and POST TELECOMMU
Assuming the 90 days trading horizon Japan Vietnam Medical is expected to generate 2.39 times more return on investment than POST TELECOMMU. However, Japan Vietnam is 2.39 times more volatile than POST TELECOMMU. It trades about 0.22 of its potential returns per unit of risk. POST TELECOMMU is currently generating about 0.33 per unit of risk. If you would invest 411,000 in Japan Vietnam Medical on November 30, 2024 and sell it today you would earn a total of 45,000 from holding Japan Vietnam Medical or generate 10.95% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Japan Vietnam Medical vs. POST TELECOMMU
Performance |
Timeline |
Japan Vietnam Medical |
POST TELECOMMU |
Japan Vietnam and POST TELECOMMU Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Japan Vietnam and POST TELECOMMU
The main advantage of trading using opposite Japan Vietnam and POST TELECOMMU positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Japan Vietnam position performs unexpectedly, POST TELECOMMU 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 POST TELECOMMU will offset losses from the drop in POST TELECOMMU's long position.Japan Vietnam vs. Danang Education Investment | ||
Japan Vietnam vs. HVC Investment and | ||
Japan Vietnam vs. Fecon Mining JSC | ||
Japan Vietnam vs. LDG Investment JSC |
POST TELECOMMU vs. Vietnam National Reinsurance | ||
POST TELECOMMU vs. An Phat Plastic | ||
POST TELECOMMU vs. Hai An Transport | ||
POST TELECOMMU vs. Vietnam Rubber Group |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
Money Managers Screen money managers from public funds and ETFs managed around the world | |
Equity Valuation Check real value of public entities based on technical and fundamental data | |
Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |