Correlation Between Canon Marketing and SBI Insurance
Can any of the company-specific risk be diversified away by investing in both Canon Marketing and SBI Insurance 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 SBI Insurance 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 SBI Insurance Group, you can compare the effects of market volatilities on Canon Marketing and SBI Insurance 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 SBI Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canon Marketing and SBI Insurance.
Diversification Opportunities for Canon Marketing and SBI Insurance
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Canon and SBI is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Canon Marketing Japan and SBI Insurance Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SBI Insurance Group 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 SBI Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SBI Insurance Group has no effect on the direction of Canon Marketing i.e., Canon Marketing and SBI Insurance go up and down completely randomly.
Pair Corralation between Canon Marketing and SBI Insurance
Assuming the 90 days horizon Canon Marketing Japan is expected to generate 0.84 times more return on investment than SBI Insurance. However, Canon Marketing Japan is 1.19 times less risky than SBI Insurance. It trades about 0.05 of its potential returns per unit of risk. SBI Insurance Group is currently generating about 0.01 per unit of risk. If you would invest 2,040 in Canon Marketing Japan on August 27, 2024 and sell it today you would earn a total of 840.00 from holding Canon Marketing Japan or generate 41.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Canon Marketing Japan vs. SBI Insurance Group
Performance |
| Timeline |
| Canon Marketing Japan |
| SBI Insurance Group |
Canon Marketing and SBI Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Canon Marketing and SBI Insurance
The main advantage of trading using opposite Canon Marketing and SBI Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canon Marketing position performs unexpectedly, SBI Insurance 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 SBI Insurance will offset losses from the drop in SBI Insurance's long position.| Canon Marketing vs. Canon Inc | Canon Marketing vs. Superior Plus Corp | Canon Marketing vs. NMI Holdings | Canon Marketing vs. Origin Agritech |
| SBI Insurance vs. Apple Inc | SBI Insurance vs. Apple Inc | SBI Insurance vs. Apple Inc | SBI Insurance vs. Apple Inc |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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