Correlation Between CANON MARKETING and CEWE Stiftung
Can any of the company-specific risk be diversified away by investing in both CANON MARKETING and CEWE Stiftung 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 CEWE Stiftung 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 CEWE Stiftung Co, you can compare the effects of market volatilities on CANON MARKETING and CEWE Stiftung 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 CEWE Stiftung. Check out your portfolio center. Please also check ongoing floating volatility patterns of CANON MARKETING and CEWE Stiftung.
Diversification Opportunities for CANON MARKETING and CEWE Stiftung
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between CANON and CEWE is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding CANON MARKETING JP and CEWE Stiftung Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CEWE Stiftung 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 CEWE Stiftung. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CEWE Stiftung has no effect on the direction of CANON MARKETING i.e., CANON MARKETING and CEWE Stiftung go up and down completely randomly.
Pair Corralation between CANON MARKETING and CEWE Stiftung
Assuming the 90 days trading horizon CANON MARKETING JP is expected to generate 1.04 times more return on investment than CEWE Stiftung. However, CANON MARKETING is 1.04 times more volatile than CEWE Stiftung Co. It trades about 0.19 of its potential returns per unit of risk. CEWE Stiftung Co is currently generating about 0.01 per unit of risk. If you would invest 2,620 in CANON MARKETING JP on October 24, 2024 and sell it today you would earn a total of 360.00 from holding CANON MARKETING JP or generate 13.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CANON MARKETING JP vs. CEWE Stiftung Co
Performance |
| Timeline |
| CANON MARKETING JP |
| CEWE Stiftung |
CANON MARKETING and CEWE Stiftung Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CANON MARKETING and CEWE Stiftung
The main advantage of trading using opposite CANON MARKETING and CEWE Stiftung positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CANON MARKETING position performs unexpectedly, CEWE Stiftung 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 CEWE Stiftung will offset losses from the drop in CEWE Stiftung's long position.| CANON MARKETING vs. SOFI TECHNOLOGIES | CANON MARKETING vs. Playtech plc | CANON MARKETING vs. COMBA TELECOM SYST | CANON MARKETING vs. TELECOM ITALIA |
| CEWE Stiftung vs. JAPAN TOBACCO UNSPADR12 | CEWE Stiftung vs. Salesforce | CEWE Stiftung vs. CarsalesCom | CEWE Stiftung vs. PLAYMATES TOYS |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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