Correlation Between Canon Marketing and Astellas Pharma
Can any of the company-specific risk be diversified away by investing in both Canon Marketing and Astellas Pharma 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 Astellas Pharma 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 Astellas Pharma, you can compare the effects of market volatilities on Canon Marketing and Astellas Pharma 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 Astellas Pharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canon Marketing and Astellas Pharma.
Diversification Opportunities for Canon Marketing and Astellas Pharma
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Canon and Astellas is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Canon Marketing Japan and Astellas Pharma in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Astellas Pharma 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 Astellas Pharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Astellas Pharma has no effect on the direction of Canon Marketing i.e., Canon Marketing and Astellas Pharma go up and down completely randomly.
Pair Corralation between Canon Marketing and Astellas Pharma
Assuming the 90 days horizon Canon Marketing Japan is expected to generate 0.88 times more return on investment than Astellas Pharma. However, Canon Marketing Japan is 1.14 times less risky than Astellas Pharma. It trades about 0.06 of its potential returns per unit of risk. Astellas Pharma is currently generating about -0.03 per unit of risk. If you would invest 2,000 in Canon Marketing Japan on September 3, 2024 and sell it today you would earn a total of 1,000.00 from holding Canon Marketing Japan 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. Astellas Pharma
Performance |
| Timeline |
| Canon Marketing Japan |
| Astellas Pharma |
Canon Marketing and Astellas Pharma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Canon Marketing and Astellas Pharma
The main advantage of trading using opposite Canon Marketing and Astellas Pharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canon Marketing position performs unexpectedly, Astellas Pharma 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 Astellas Pharma will offset losses from the drop in Astellas Pharma's long position.| Canon Marketing vs. HNI Corporation | Canon Marketing vs. Superior Plus Corp | Canon Marketing vs. NMI Holdings | Canon Marketing vs. Origin Agritech |
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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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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