Correlation Between CANON MARKETING and ATRYS HEALTH
Can any of the company-specific risk be diversified away by investing in both CANON MARKETING and ATRYS HEALTH 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 ATRYS HEALTH 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 ATRYS HEALTH SA, you can compare the effects of market volatilities on CANON MARKETING and ATRYS HEALTH 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 ATRYS HEALTH. Check out your portfolio center. Please also check ongoing floating volatility patterns of CANON MARKETING and ATRYS HEALTH.
Diversification Opportunities for CANON MARKETING and ATRYS HEALTH
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between CANON and ATRYS is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding CANON MARKETING JP and ATRYS HEALTH SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATRYS HEALTH SA 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 ATRYS HEALTH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATRYS HEALTH SA has no effect on the direction of CANON MARKETING i.e., CANON MARKETING and ATRYS HEALTH go up and down completely randomly.
Pair Corralation between CANON MARKETING and ATRYS HEALTH
Assuming the 90 days trading horizon CANON MARKETING JP is expected to generate 0.59 times more return on investment than ATRYS HEALTH. However, CANON MARKETING JP is 1.69 times less risky than ATRYS HEALTH. It trades about 0.06 of its potential returns per unit of risk. ATRYS HEALTH SA is currently generating about -0.04 per unit of risk. If you would invest 2,260 in CANON MARKETING JP on August 31, 2024 and sell it today you would earn a total of 780.00 from holding CANON MARKETING JP or generate 34.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.74% |
| Values | Daily Returns |
CANON MARKETING JP vs. ATRYS HEALTH SA
Performance |
| Timeline |
| CANON MARKETING JP |
| ATRYS HEALTH SA |
CANON MARKETING and ATRYS HEALTH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CANON MARKETING and ATRYS HEALTH
The main advantage of trading using opposite CANON MARKETING and ATRYS HEALTH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CANON MARKETING position performs unexpectedly, ATRYS HEALTH 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 ATRYS HEALTH will offset losses from the drop in ATRYS HEALTH's long position.| CANON MARKETING vs. Fukuyama Transporting Co | CANON MARKETING vs. Ming Le Sports | CANON MARKETING vs. Jacquet Metal Service | CANON MARKETING vs. Darden Restaurants |
| ATRYS HEALTH vs. Superior Plus Corp | ATRYS HEALTH vs. NMI Holdings | ATRYS HEALTH vs. Origin Agritech | ATRYS HEALTH vs. SIVERS SEMICONDUCTORS AB |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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