Correlation Between Canon Marketing and RETAIL FOOD
Can any of the company-specific risk be diversified away by investing in both Canon Marketing and RETAIL FOOD 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 RETAIL FOOD 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 RETAIL FOOD GROUP, you can compare the effects of market volatilities on Canon Marketing and RETAIL FOOD 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 RETAIL FOOD. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canon Marketing and RETAIL FOOD.
Diversification Opportunities for Canon Marketing and RETAIL FOOD
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Canon and RETAIL is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Canon Marketing Japan and RETAIL FOOD GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RETAIL FOOD 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 RETAIL FOOD. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RETAIL FOOD GROUP has no effect on the direction of Canon Marketing i.e., Canon Marketing and RETAIL FOOD go up and down completely randomly.
Pair Corralation between Canon Marketing and RETAIL FOOD
Assuming the 90 days horizon Canon Marketing Japan is expected to generate 0.51 times more return on investment than RETAIL FOOD. However, Canon Marketing Japan is 1.94 times less risky than RETAIL FOOD. It trades about 0.05 of its potential returns per unit of risk. RETAIL FOOD GROUP is currently generating about -0.03 per unit of risk. If you would invest 2,080 in Canon Marketing Japan on October 15, 2024 and sell it today you would earn a total of 900.00 from holding Canon Marketing Japan or generate 43.27% 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. RETAIL FOOD GROUP
Performance |
| Timeline |
| Canon Marketing Japan |
| RETAIL FOOD GROUP |
Canon Marketing and RETAIL FOOD Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Canon Marketing and RETAIL FOOD
The main advantage of trading using opposite Canon Marketing and RETAIL FOOD positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canon Marketing position performs unexpectedly, RETAIL FOOD 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 RETAIL FOOD will offset losses from the drop in RETAIL FOOD's long position.| Canon Marketing vs. Retail Estates NV | Canon Marketing vs. Caseys General Stores | Canon Marketing vs. NXP Semiconductors NV | Canon Marketing vs. Hua Hong Semiconductor |
| RETAIL FOOD vs. Silicon Motion Technology | RETAIL FOOD vs. Soken Chemical Engineering | RETAIL FOOD vs. Sekisui Chemical Co | RETAIL FOOD vs. Quaker Chemical |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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