Correlation Between JAPAN AIRLINES and GLOBUS MEDICAL
Can any of the company-specific risk be diversified away by investing in both JAPAN AIRLINES and GLOBUS MEDICAL 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 AIRLINES and GLOBUS MEDICAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JAPAN AIRLINES and GLOBUS MEDICAL A, you can compare the effects of market volatilities on JAPAN AIRLINES and GLOBUS MEDICAL 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 AIRLINES with a short position of GLOBUS MEDICAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of JAPAN AIRLINES and GLOBUS MEDICAL.
Diversification Opportunities for JAPAN AIRLINES and GLOBUS MEDICAL
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between JAPAN and GLOBUS is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding JAPAN AIRLINES and GLOBUS MEDICAL A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GLOBUS MEDICAL A and JAPAN AIRLINES 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 AIRLINES are associated (or correlated) with GLOBUS MEDICAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GLOBUS MEDICAL A has no effect on the direction of JAPAN AIRLINES i.e., JAPAN AIRLINES and GLOBUS MEDICAL go up and down completely randomly.
Pair Corralation between JAPAN AIRLINES and GLOBUS MEDICAL
Assuming the 90 days trading horizon JAPAN AIRLINES is expected to under-perform the GLOBUS MEDICAL. But the stock apears to be less risky and, when comparing its historical volatility, JAPAN AIRLINES is 2.62 times less risky than GLOBUS MEDICAL. The stock trades about -0.11 of its potential returns per unit of risk. The GLOBUS MEDICAL A is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 5,100 in GLOBUS MEDICAL A on September 3, 2025 and sell it today you would earn a total of 2,550 from holding GLOBUS MEDICAL A or generate 50.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.46% |
| Values | Daily Returns |
JAPAN AIRLINES vs. GLOBUS MEDICAL A
Performance |
| Timeline |
| JAPAN AIRLINES |
| GLOBUS MEDICAL A |
JAPAN AIRLINES and GLOBUS MEDICAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JAPAN AIRLINES and GLOBUS MEDICAL
The main advantage of trading using opposite JAPAN AIRLINES and GLOBUS MEDICAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JAPAN AIRLINES position performs unexpectedly, GLOBUS MEDICAL 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 GLOBUS MEDICAL will offset losses from the drop in GLOBUS MEDICAL's long position.| JAPAN AIRLINES vs. COFFEE HOLDING | JAPAN AIRLINES vs. Horseshoe Metals Limited | JAPAN AIRLINES vs. MAGNUM MINING EXP | JAPAN AIRLINES vs. ITALIAN WINE BRANDS |
| GLOBUS MEDICAL vs. TRADEGATE | GLOBUS MEDICAL vs. The Trade Desk | GLOBUS MEDICAL vs. Astral Foods Limited | GLOBUS MEDICAL vs. Salesforce |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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