Correlation Between Canaan and Seiko Epson
Can any of the company-specific risk be diversified away by investing in both Canaan and Seiko Epson 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 Canaan and Seiko Epson into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Canaan Inc and Seiko Epson, you can compare the effects of market volatilities on Canaan and Seiko Epson 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 Canaan with a short position of Seiko Epson. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canaan and Seiko Epson.
Diversification Opportunities for Canaan and Seiko Epson
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Canaan and Seiko is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Canaan Inc and Seiko Epson in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Seiko Epson and Canaan 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 Canaan Inc are associated (or correlated) with Seiko Epson. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Seiko Epson has no effect on the direction of Canaan i.e., Canaan and Seiko Epson go up and down completely randomly.
Pair Corralation between Canaan and Seiko Epson
If you would invest 116.00 in Canaan Inc on September 1, 2024 and sell it today you would earn a total of 96.00 from holding Canaan Inc or generate 82.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Canaan Inc vs. Seiko Epson
Performance |
| Timeline |
| Canaan Inc |
| Seiko Epson |
Canaan and Seiko Epson Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Canaan and Seiko Epson
The main advantage of trading using opposite Canaan and Seiko Epson positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canaan position performs unexpectedly, Seiko Epson 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 Seiko Epson will offset losses from the drop in Seiko Epson's long position.| Canaan vs. 3D Systems | Canaan vs. NetApp Inc | Canaan vs. Rigetti Computing | Canaan vs. Logitech International SA |
| Seiko Epson vs. Quantum Computing | Seiko Epson vs. Rigetti Computing | Seiko Epson vs. D Wave Quantum | Seiko Epson vs. Red Cat Holdings |
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 CEOs Directory module to screen CEOs from public companies around the world.
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