Correlation Between JAPAN POST and SAITECH Global

Can any of the company-specific risk be diversified away by investing in both JAPAN POST and SAITECH Global 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 SAITECH Global 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 SAITECH Global, you can compare the effects of market volatilities on JAPAN POST and SAITECH Global 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 SAITECH Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of JAPAN POST and SAITECH Global.

Diversification Opportunities for JAPAN POST and SAITECH Global

0.0

Correlation Coefficient

JAPAN POST  SAITECH Global

Pay attention - limited upside

The 3 months correlation between JAPAN and SAITECH is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding JAPAN POST BANK and SAITECH Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SAITECH Global 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 SAITECH Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SAITECH Global has no effect on the direction of JAPAN POST i.e., JAPAN POST and SAITECH Global go up and down completely randomly.

Pair Corralation between JAPAN POST and SAITECH Global

If you would invest  918.00  in JAPAN POST BANK on September 16, 2024 and sell it today you would earn a total of  28.00  from holding JAPAN POST BANK or generate 3.05% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

JAPAN POST BANK  vs.  SAITECH Global

JAPAN POST BANK

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in JAPAN POST BANK are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, JAPAN POST is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

SAITECH Global

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days SAITECH Global has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, SAITECH Global is not utilizing all of its potentials. The current stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with JAPAN POST and SAITECH Global

The main advantage of trading using opposite JAPAN POST and SAITECH Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JAPAN POST position performs unexpectedly, SAITECH Global 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 SAITECH Global will offset losses from the drop in SAITECH Global's long position.

The idea behind JAPAN POST BANK and SAITECH Global pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.