Correlation Between Canon Marketing and TRADEDOUBLER
Can any of the company-specific risk be diversified away by investing in both Canon Marketing and TRADEDOUBLER 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 TRADEDOUBLER 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 TRADEDOUBLER AB SK, you can compare the effects of market volatilities on Canon Marketing and TRADEDOUBLER 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 TRADEDOUBLER. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canon Marketing and TRADEDOUBLER.
Diversification Opportunities for Canon Marketing and TRADEDOUBLER
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Canon and TRADEDOUBLER is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Canon Marketing Japan and TRADEDOUBLER AB SK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TRADEDOUBLER AB SK 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 TRADEDOUBLER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TRADEDOUBLER AB SK has no effect on the direction of Canon Marketing i.e., Canon Marketing and TRADEDOUBLER go up and down completely randomly.
Pair Corralation between Canon Marketing and TRADEDOUBLER
Assuming the 90 days horizon Canon Marketing Japan is expected to generate 0.3 times more return on investment than TRADEDOUBLER. However, Canon Marketing Japan is 3.34 times less risky than TRADEDOUBLER. It trades about 0.32 of its potential returns per unit of risk. TRADEDOUBLER AB SK is currently generating about -0.02 per unit of risk. If you would invest 2,620 in Canon Marketing Japan on August 25, 2024 and sell it today you would earn a total of 240.00 from holding Canon Marketing Japan or generate 9.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Canon Marketing Japan vs. TRADEDOUBLER AB SK
Performance |
| Timeline |
| Canon Marketing Japan |
| TRADEDOUBLER AB SK |
Canon Marketing and TRADEDOUBLER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Canon Marketing and TRADEDOUBLER
The main advantage of trading using opposite Canon Marketing and TRADEDOUBLER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canon Marketing position performs unexpectedly, TRADEDOUBLER 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 TRADEDOUBLER will offset losses from the drop in TRADEDOUBLER's long position.| Canon Marketing vs. Canon Inc | Canon Marketing vs. Superior Plus Corp | Canon Marketing vs. NMI Holdings | Canon Marketing vs. Origin Agritech |
| TRADEDOUBLER vs. The Interpublic Group | TRADEDOUBLER vs. Superior Plus Corp | TRADEDOUBLER vs. NMI Holdings | TRADEDOUBLER vs. Origin Agritech |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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