Correlation Between SPECTRAL MEDICAL and Japan Post
Can any of the company-specific risk be diversified away by investing in both SPECTRAL MEDICAL and Japan Post 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 SPECTRAL MEDICAL and Japan Post into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SPECTRAL MEDICAL and Japan Post Insurance, you can compare the effects of market volatilities on SPECTRAL MEDICAL and Japan Post 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 SPECTRAL MEDICAL with a short position of Japan Post. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPECTRAL MEDICAL and Japan Post.
Diversification Opportunities for SPECTRAL MEDICAL and Japan Post
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SPECTRAL and Japan is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding SPECTRAL MEDICAL and Japan Post Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Japan Post Insurance and SPECTRAL MEDICAL 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 SPECTRAL MEDICAL are associated (or correlated) with Japan Post. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Japan Post Insurance has no effect on the direction of SPECTRAL MEDICAL i.e., SPECTRAL MEDICAL and Japan Post go up and down completely randomly.
Pair Corralation between SPECTRAL MEDICAL and Japan Post
Assuming the 90 days horizon SPECTRAL MEDICAL is expected to generate 2.57 times more return on investment than Japan Post. However, SPECTRAL MEDICAL is 2.57 times more volatile than Japan Post Insurance. It trades about 0.05 of its potential returns per unit of risk. Japan Post Insurance is currently generating about 0.04 per unit of risk. If you would invest 23.00 in SPECTRAL MEDICAL on October 16, 2024 and sell it today you would earn a total of 14.00 from holding SPECTRAL MEDICAL or generate 60.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SPECTRAL MEDICAL vs. Japan Post Insurance
Performance |
| Timeline |
| SPECTRAL MEDICAL |
| Japan Post Insurance |
SPECTRAL MEDICAL and Japan Post Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPECTRAL MEDICAL and Japan Post
The main advantage of trading using opposite SPECTRAL MEDICAL and Japan Post positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPECTRAL MEDICAL position performs unexpectedly, Japan Post 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 Japan Post will offset losses from the drop in Japan Post's long position.| SPECTRAL MEDICAL vs. Wayside Technology Group | SPECTRAL MEDICAL vs. Comba Telecom Systems | SPECTRAL MEDICAL vs. FANDIFI TECHNOLOGY P | SPECTRAL MEDICAL vs. ecotel communication ag |
| Japan Post vs. SPECTRAL MEDICAL | Japan Post vs. Diamyd Medical AB | Japan Post vs. SALESFORCE INC CDR | Japan Post vs. SCANDMEDICAL SOLDK 040 |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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