Correlation Between COFCO Joycome and CANON MARKETING
Can any of the company-specific risk be diversified away by investing in both COFCO Joycome and CANON MARKETING 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 COFCO Joycome and CANON MARKETING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between COFCO Joycome Foods and CANON MARKETING JP, you can compare the effects of market volatilities on COFCO Joycome and CANON MARKETING 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 COFCO Joycome with a short position of CANON MARKETING. Check out your portfolio center. Please also check ongoing floating volatility patterns of COFCO Joycome and CANON MARKETING.
Diversification Opportunities for COFCO Joycome and CANON MARKETING
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between COFCO and CANON is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding COFCO Joycome Foods and CANON MARKETING JP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CANON MARKETING JP and COFCO Joycome 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 COFCO Joycome Foods are associated (or correlated) with CANON MARKETING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CANON MARKETING JP has no effect on the direction of COFCO Joycome i.e., COFCO Joycome and CANON MARKETING go up and down completely randomly.
Pair Corralation between COFCO Joycome and CANON MARKETING
Assuming the 90 days horizon COFCO Joycome is expected to generate 19.51 times less return on investment than CANON MARKETING. In addition to that, COFCO Joycome is 2.31 times more volatile than CANON MARKETING JP. It trades about 0.0 of its total potential returns per unit of risk. CANON MARKETING JP is currently generating about 0.09 per unit of volatility. If you would invest 2,180 in CANON MARKETING JP on September 14, 2024 and sell it today you would earn a total of 920.00 from holding CANON MARKETING JP or generate 42.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.64% |
| Values | Daily Returns |
COFCO Joycome Foods vs. CANON MARKETING JP
Performance |
| Timeline |
| COFCO Joycome Foods |
| CANON MARKETING JP |
COFCO Joycome and CANON MARKETING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COFCO Joycome and CANON MARKETING
The main advantage of trading using opposite COFCO Joycome and CANON MARKETING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COFCO Joycome position performs unexpectedly, CANON MARKETING 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 CANON MARKETING will offset losses from the drop in CANON MARKETING's long position.| COFCO Joycome vs. Hormel Foods | COFCO Joycome vs. Superior Plus Corp | COFCO Joycome vs. SIVERS SEMICONDUCTORS AB | COFCO Joycome vs. NorAm Drilling AS |
| CANON MARKETING vs. Apple Inc | CANON MARKETING vs. Apple Inc | CANON MARKETING vs. Apple Inc | CANON MARKETING vs. Apple Inc |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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