Correlation Between Pender Real and Japanese Small

Can any of the company-specific risk be diversified away by investing in both Pender Real and Japanese Small 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 Pender Real and Japanese Small into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Pender Real Estate and Japanese Small Pany, you can compare the effects of market volatilities on Pender Real and Japanese Small 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 Pender Real with a short position of Japanese Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pender Real and Japanese Small.

Diversification Opportunities for Pender Real and Japanese Small

-0.41

Correlation Coefficient

Pender Real  Japanese Small

Very good diversification

The 3 months correlation between Pender and Japanese is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Pender Real Estate and Japanese Small Pany in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Japanese Small Pany and Pender Real 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 Pender Real Estate are associated (or correlated) with Japanese Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Japanese Small Pany has no effect on the direction of Pender Real i.e., Pender Real and Japanese Small go up and down completely randomly.

Pair Corralation between Pender Real and Japanese Small

Assuming the 90 days horizon Pender Real Estate is expected to generate 0.04 times more return on investment than Japanese Small. However, Pender Real Estate is 22.24 times less risky than Japanese Small. It trades about 0.6 of its potential returns per unit of risk. Japanese Small Pany is currently generating about 0.01 per unit of risk. If you would invest  991.00  in Pender Real Estate on August 27, 2025 and sell it today you would earn a total of  17.00  from holding Pender Real Estate or generate 1.72% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Pender Real Estate  vs.  Japanese Small Pany

Pender Real Estate

Risk-Adjusted Performance

Prime

Compared to the overall equity markets, risk-adjusted returns on investments in Pender Real Estate are ranked lower than 47 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward indicators, Pender Real is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Japanese Small Pany

Risk-Adjusted Performance

Weakest

Over the last 90 days Japanese Small Pany has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Japanese Small is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Pender Real and Japanese Small

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

The idea behind Pender Real Estate and Japanese Small Pany 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.