Correlation Between Canon and Canaan
Can any of the company-specific risk be diversified away by investing in both Canon and Canaan 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 Canaan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Canon Inc and Canaan Inc, you can compare the effects of market volatilities on Canon and Canaan 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 Canaan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canon and Canaan.
Diversification Opportunities for Canon and Canaan
Pay attention - limited upside
The 3 months correlation between Canon and Canaan is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Canon Inc and Canaan Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Canaan Inc 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 Canaan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Canaan Inc has no effect on the direction of Canon i.e., Canon and Canaan go up and down completely randomly.
Pair Corralation between Canon and Canaan
If you would invest 188.00 in Canaan Inc on September 4, 2024 and sell it today you would earn a total of 20.00 from holding Canaan Inc or generate 10.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Canon Inc vs. Canaan Inc
Performance |
| Timeline |
| Canon Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Canaan Inc |
Canon and Canaan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Canon and Canaan
The main advantage of trading using opposite Canon and Canaan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canon position performs unexpectedly, Canaan 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 Canaan will offset losses from the drop in Canaan's long position.| Canon vs. Dave Busters Entertainment | Canon vs. Centessa Pharmaceuticals PLC | Canon vs. Sweetgreen | Canon vs. BioNTech SE |
| Canaan vs. 3D Systems | Canaan vs. NetApp Inc | Canaan vs. Rigetti Computing | Canaan vs. Logitech International SA |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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