Correlation Between Canon Marketing and Nib Holdings
Can any of the company-specific risk be diversified away by investing in both Canon Marketing and Nib Holdings 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 Marketing and Nib Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Canon Marketing Japan and nib holdings limited, you can compare the effects of market volatilities on Canon Marketing and Nib Holdings 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 Marketing with a short position of Nib Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canon Marketing and Nib Holdings.
Diversification Opportunities for Canon Marketing and Nib Holdings
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Canon and Nib is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Canon Marketing Japan and nib holdings limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on nib holdings limited and Canon Marketing 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 Marketing Japan are associated (or correlated) with Nib Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of nib holdings limited has no effect on the direction of Canon Marketing i.e., Canon Marketing and Nib Holdings go up and down completely randomly.
Pair Corralation between Canon Marketing and Nib Holdings
Assuming the 90 days horizon Canon Marketing is expected to generate 23.58 times less return on investment than Nib Holdings. But when comparing it to its historical volatility, Canon Marketing Japan is 1.23 times less risky than Nib Holdings. It trades about 0.01 of its potential returns per unit of risk. nib holdings limited is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 322.00 in nib holdings limited on November 2, 2024 and sell it today you would earn a total of 12.00 from holding nib holdings limited or generate 3.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Canon Marketing Japan vs. nib holdings limited
Performance |
| Timeline |
| Canon Marketing Japan |
| nib holdings limited |
Canon Marketing and Nib Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Canon Marketing and Nib Holdings
The main advantage of trading using opposite Canon Marketing and Nib Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canon Marketing position performs unexpectedly, Nib Holdings 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 Nib Holdings will offset losses from the drop in Nib Holdings' long position.| Canon Marketing vs. De Grey Mining | Canon Marketing vs. Silicon Motion Technology | Canon Marketing vs. Mitsubishi Gas Chemical | Canon Marketing vs. Soken Chemical Engineering |
| Nib Holdings vs. Mapfre SA | Nib Holdings vs. MGIC Investment | Nib Holdings vs. Assured Guaranty | Nib Holdings vs. Radian Group |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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