Correlation Between Agilent Technologies and Canon Marketing
Can any of the company-specific risk be diversified away by investing in both Agilent Technologies 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 Agilent Technologies and Canon Marketing into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Agilent Technologies and Canon Marketing Japan, you can compare the effects of market volatilities on Agilent Technologies 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 Agilent Technologies with a short position of Canon Marketing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agilent Technologies and Canon Marketing.
Diversification Opportunities for Agilent Technologies and Canon Marketing
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Agilent and Canon is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Agilent Technologies and Canon Marketing Japan in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Canon Marketing Japan and Agilent Technologies 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 Agilent Technologies 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 Japan has no effect on the direction of Agilent Technologies i.e., Agilent Technologies and Canon Marketing go up and down completely randomly.
Pair Corralation between Agilent Technologies and Canon Marketing
Assuming the 90 days horizon Agilent Technologies is expected to generate 35.04 times less return on investment than Canon Marketing. In addition to that, Agilent Technologies is 1.15 times more volatile than Canon Marketing Japan. It trades about 0.0 of its total potential returns per unit of risk. Canon Marketing Japan is currently generating about 0.05 per unit of volatility. If you would invest 2,080 in Canon Marketing Japan on October 15, 2024 and sell it today you would earn a total of 900.00 from holding Canon Marketing Japan or generate 43.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Agilent Technologies vs. Canon Marketing Japan
Performance |
| Timeline |
| Agilent Technologies |
| Canon Marketing Japan |
Agilent Technologies and Canon Marketing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agilent Technologies and Canon Marketing
The main advantage of trading using opposite Agilent Technologies and Canon Marketing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agilent Technologies 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.| Agilent Technologies vs. INTER CARS SA | Agilent Technologies vs. United Natural Foods | Agilent Technologies vs. CN MODERN DAIRY | Agilent Technologies vs. CarsalesCom |
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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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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