Correlation Between Canon Marketing and Dollarama
Can any of the company-specific risk be diversified away by investing in both Canon Marketing and Dollarama 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 Dollarama 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 Dollarama, you can compare the effects of market volatilities on Canon Marketing and Dollarama 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 Dollarama. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canon Marketing and Dollarama.
Diversification Opportunities for Canon Marketing and Dollarama
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Canon and Dollarama is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Canon Marketing Japan and Dollarama in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dollarama 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 Dollarama. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dollarama has no effect on the direction of Canon Marketing i.e., Canon Marketing and Dollarama go up and down completely randomly.
Pair Corralation between Canon Marketing and Dollarama
Assuming the 90 days horizon Canon Marketing Japan is expected to generate 0.72 times more return on investment than Dollarama. However, Canon Marketing Japan is 1.39 times less risky than Dollarama. It trades about 0.21 of its potential returns per unit of risk. Dollarama is currently generating about -0.1 per unit of risk. If you would invest 2,920 in Canon Marketing Japan on September 15, 2024 and sell it today you would earn a total of 160.00 from holding Canon Marketing Japan or generate 5.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Canon Marketing Japan vs. Dollarama
Performance |
| Timeline |
| Canon Marketing Japan |
| Dollarama |
Canon Marketing and Dollarama Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Canon Marketing and Dollarama
The main advantage of trading using opposite Canon Marketing and Dollarama positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canon Marketing position performs unexpectedly, Dollarama 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 Dollarama will offset losses from the drop in Dollarama's long position.| Canon Marketing vs. Canon Inc | Canon Marketing vs. Canon Inc | Canon Marketing vs. Ricoh Company | Canon Marketing vs. Herman Miller |
| Dollarama vs. T MOBILE US | Dollarama vs. MTI WIRELESS EDGE | Dollarama vs. Canon Marketing Japan | Dollarama vs. MARKET VECTR RETAIL |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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