Correlation Between Canon and Nano Dimension
Can any of the company-specific risk be diversified away by investing in both Canon and Nano Dimension 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 Canon and Nano Dimension into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Canon Inc and Nano Dimension, you can compare the effects of market volatilities on Canon and Nano Dimension 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 Canon with a short position of Nano Dimension. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canon and Nano Dimension.
Diversification Opportunities for Canon and Nano Dimension
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Canon and Nano is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Canon Inc and Nano Dimension in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nano Dimension and Canon 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 Canon Inc are associated (or correlated) with Nano Dimension. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nano Dimension has no effect on the direction of Canon i.e., Canon and Nano Dimension go up and down completely randomly.
Pair Corralation between Canon and Nano Dimension
Assuming the 90 days horizon Canon Inc is expected to generate 0.97 times more return on investment than Nano Dimension. However, Canon Inc is 1.03 times less risky than Nano Dimension. It trades about 0.05 of its potential returns per unit of risk. Nano Dimension is currently generating about 0.01 per unit of risk. If you would invest 2,020 in Canon Inc on September 2, 2024 and sell it today you would earn a total of 1,081 from holding Canon Inc or generate 53.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 84.88% |
| Values | Daily Returns |
Canon Inc vs. Nano Dimension
Performance |
| Timeline |
| Canon Inc |
| Nano Dimension |
Canon and Nano Dimension Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Canon and Nano Dimension
The main advantage of trading using opposite Canon and Nano Dimension positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canon position performs unexpectedly, Nano Dimension 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 Nano Dimension will offset losses from the drop in Nano Dimension's long position.| Canon vs. Quantum Computing | Canon vs. Rigetti Computing | Canon vs. D Wave Quantum | Canon vs. Red Cat Holdings |
| Nano Dimension vs. Desktop Metal | Nano Dimension vs. 3D Systems | Nano Dimension vs. Markforged Holding Corp | Nano Dimension vs. Stratasys |
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 Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |