Correlation Between CANON MARKETING and DAX Index
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By analyzing existing cross correlation between CANON MARKETING JP and DAX Index, you can compare the effects of market volatilities on CANON MARKETING and DAX Index 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 DAX Index. Check out your portfolio center. Please also check ongoing floating volatility patterns of CANON MARKETING and DAX Index.
Diversification Opportunities for CANON MARKETING and DAX Index
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between CANON and DAX is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding CANON MARKETING JP and DAX Index in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DAX Index 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 DAX Index. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DAX Index has no effect on the direction of CANON MARKETING i.e., CANON MARKETING and DAX Index go up and down completely randomly.
Pair Corralation between CANON MARKETING and DAX Index
Assuming the 90 days trading horizon CANON MARKETING JP is expected to generate 1.64 times more return on investment than DAX Index. However, CANON MARKETING is 1.64 times more volatile than DAX Index. It trades about 0.17 of its potential returns per unit of risk. DAX Index is currently generating about 0.13 per unit of risk. If you would invest 2,840 in CANON MARKETING JP on September 13, 2024 and sell it today you would earn a total of 280.00 from holding CANON MARKETING JP or generate 9.86% 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. DAX Index
Performance |
| Timeline |
CANON MARKETING and DAX Index Volatility Contrast
Predicted Return Density |
| Returns |
CANON MARKETING JP
Pair trading matchups for CANON MARKETING
DAX Index
Pair trading matchups for DAX Index
Pair Trading with CANON MARKETING and DAX Index
The main advantage of trading using opposite CANON MARKETING and DAX Index positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CANON MARKETING position performs unexpectedly, DAX Index 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 DAX Index will offset losses from the drop in DAX Index's long position.| CANON MARKETING vs. Apple Inc | CANON MARKETING vs. Apple Inc | CANON MARKETING vs. Apple Inc | CANON MARKETING vs. Apple Inc |
| DAX Index vs. Consolidated Communications Holdings | DAX Index vs. Spirent Communications plc | DAX Index vs. Gamma Communications plc | DAX Index vs. CITIC Telecom International |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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