Correlation Between CANON MARKETING and Compagnie Plastic
Can any of the company-specific risk be diversified away by investing in both CANON MARKETING and Compagnie Plastic 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 Compagnie Plastic 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 Compagnie Plastic Omnium, you can compare the effects of market volatilities on CANON MARKETING and Compagnie Plastic 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 Compagnie Plastic. Check out your portfolio center. Please also check ongoing floating volatility patterns of CANON MARKETING and Compagnie Plastic.
Diversification Opportunities for CANON MARKETING and Compagnie Plastic
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between CANON and Compagnie is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding CANON MARKETING JP and Compagnie Plastic Omnium in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Compagnie Plastic Omnium 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 Compagnie Plastic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Compagnie Plastic Omnium has no effect on the direction of CANON MARKETING i.e., CANON MARKETING and Compagnie Plastic go up and down completely randomly.
Pair Corralation between CANON MARKETING and Compagnie Plastic
Assuming the 90 days trading horizon CANON MARKETING JP is expected to generate 0.56 times more return on investment than Compagnie Plastic. However, CANON MARKETING JP is 1.79 times less risky than Compagnie Plastic. It trades about 0.13 of its potential returns per unit of risk. Compagnie Plastic Omnium is currently generating about 0.01 per unit of risk. If you would invest 2,820 in CANON MARKETING JP on September 3, 2024 and sell it today you would earn a total of 220.00 from holding CANON MARKETING JP or generate 7.8% 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 JP vs. Compagnie Plastic Omnium
Performance |
| Timeline |
| CANON MARKETING JP |
| Compagnie Plastic Omnium |
CANON MARKETING and Compagnie Plastic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CANON MARKETING and Compagnie Plastic
The main advantage of trading using opposite CANON MARKETING and Compagnie Plastic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CANON MARKETING position performs unexpectedly, Compagnie Plastic 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 Compagnie Plastic will offset losses from the drop in Compagnie Plastic's long position.| CANON MARKETING vs. TOTAL GABON | CANON MARKETING vs. Walgreens Boots Alliance | CANON MARKETING vs. Peak Resources Limited |
| Compagnie Plastic vs. Dno ASA | Compagnie Plastic vs. PT Astra International | Compagnie Plastic vs. Superior Plus Corp | Compagnie Plastic vs. NMI Holdings |
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 Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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