Correlation Between Canon Marketing and Sandfire Resources
Can any of the company-specific risk be diversified away by investing in both Canon Marketing and Sandfire Resources 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 Sandfire Resources 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 Sandfire Resources Limited, you can compare the effects of market volatilities on Canon Marketing and Sandfire Resources 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 Sandfire Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canon Marketing and Sandfire Resources.
Diversification Opportunities for Canon Marketing and Sandfire Resources
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Canon and Sandfire is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Canon Marketing Japan and Sandfire Resources Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sandfire Resources 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 Sandfire Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sandfire Resources has no effect on the direction of Canon Marketing i.e., Canon Marketing and Sandfire Resources go up and down completely randomly.
Pair Corralation between Canon Marketing and Sandfire Resources
Assuming the 90 days horizon Canon Marketing is expected to generate 1.18 times less return on investment than Sandfire Resources. But when comparing it to its historical volatility, Canon Marketing Japan is 1.57 times less risky than Sandfire Resources. It trades about 0.06 of its potential returns per unit of risk. Sandfire Resources Limited is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 400.00 in Sandfire Resources Limited on November 5, 2024 and sell it today you would earn a total of 200.00 from holding Sandfire Resources Limited or generate 50.0% 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. Sandfire Resources Limited
Performance |
| Timeline |
| Canon Marketing Japan |
| Sandfire Resources |
Canon Marketing and Sandfire Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Canon Marketing and Sandfire Resources
The main advantage of trading using opposite Canon Marketing and Sandfire Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canon Marketing position performs unexpectedly, Sandfire Resources 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 Sandfire Resources will offset losses from the drop in Sandfire Resources' long position.| Canon Marketing vs. FAST RETAIL ADR | Canon Marketing vs. GRIFFIN MINING LTD | Canon Marketing vs. SERI INDUSTRIAL EO | Canon Marketing vs. SALESFORCE INC CDR |
| Sandfire Resources vs. Cognizant Technology Solutions | Sandfire Resources vs. 24SEVENOFFICE GROUP AB | Sandfire Resources vs. MAVEN WIRELESS SWEDEN | Sandfire Resources vs. Casio Computer CoLtd |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |