Correlation Between CANON MARKETING and BANK HANDLOWY
Can any of the company-specific risk be diversified away by investing in both CANON MARKETING and BANK HANDLOWY 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 BANK HANDLOWY into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CANON MARKETING JP and BANK HANDLOWY, you can compare the effects of market volatilities on CANON MARKETING and BANK HANDLOWY 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 BANK HANDLOWY. Check out your portfolio center. Please also check ongoing floating volatility patterns of CANON MARKETING and BANK HANDLOWY.
Diversification Opportunities for CANON MARKETING and BANK HANDLOWY
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between CANON and BANK is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding CANON MARKETING JP and BANK HANDLOWY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BANK HANDLOWY 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 JP are associated (or correlated) with BANK HANDLOWY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BANK HANDLOWY has no effect on the direction of CANON MARKETING i.e., CANON MARKETING and BANK HANDLOWY go up and down completely randomly.
Pair Corralation between CANON MARKETING and BANK HANDLOWY
Assuming the 90 days trading horizon CANON MARKETING JP is expected to generate 2.43 times more return on investment than BANK HANDLOWY. However, CANON MARKETING is 2.43 times more volatile than BANK HANDLOWY. It trades about 0.28 of its potential returns per unit of risk. BANK HANDLOWY is currently generating about -0.34 per unit of risk. If you would invest 2,760 in CANON MARKETING JP on August 30, 2024 and sell it today you would earn a total of 180.00 from holding CANON MARKETING JP or generate 6.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
CANON MARKETING JP vs. BANK HANDLOWY
Performance |
| Timeline |
| CANON MARKETING JP |
| BANK HANDLOWY |
CANON MARKETING and BANK HANDLOWY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CANON MARKETING and BANK HANDLOWY
The main advantage of trading using opposite CANON MARKETING and BANK HANDLOWY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CANON MARKETING position performs unexpectedly, BANK HANDLOWY 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 BANK HANDLOWY will offset losses from the drop in BANK HANDLOWY's long position.| CANON MARKETING vs. Apple Inc | CANON MARKETING vs. Apple Inc | CANON MARKETING vs. Superior Plus Corp | CANON MARKETING vs. SIVERS SEMICONDUCTORS AB |
| BANK HANDLOWY vs. SENECA FOODS A | BANK HANDLOWY vs. LIFENET INSURANCE CO | BANK HANDLOWY vs. HANOVER INSURANCE | BANK HANDLOWY vs. Reinsurance Group of |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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