Correlation Between CANON MARKETING and Voya Financial
Can any of the company-specific risk be diversified away by investing in both CANON MARKETING and Voya Financial 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 Voya Financial 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 Voya Financial, you can compare the effects of market volatilities on CANON MARKETING and Voya Financial 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 Voya Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of CANON MARKETING and Voya Financial.
Diversification Opportunities for CANON MARKETING and Voya Financial
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CANON and Voya is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding CANON MARKETING JP and Voya Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Financial 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 Voya Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Financial has no effect on the direction of CANON MARKETING i.e., CANON MARKETING and Voya Financial go up and down completely randomly.
Pair Corralation between CANON MARKETING and Voya Financial
Assuming the 90 days trading horizon CANON MARKETING JP is expected to under-perform the Voya Financial. In addition to that, CANON MARKETING is 1.08 times more volatile than Voya Financial. It trades about -0.12 of its total potential returns per unit of risk. Voya Financial is currently generating about 0.01 per unit of volatility. If you would invest 6,550 in Voya Financial on October 15, 2024 and sell it today you would earn a total of 0.00 from holding Voya Financial or generate 0.0% 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. Voya Financial
Performance |
| Timeline |
| CANON MARKETING JP |
| Voya Financial |
CANON MARKETING and Voya Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CANON MARKETING and Voya Financial
The main advantage of trading using opposite CANON MARKETING and Voya Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CANON MARKETING position performs unexpectedly, Voya Financial 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 Voya Financial will offset losses from the drop in Voya Financial's long position.| CANON MARKETING vs. Gladstone Investment | CANON MARKETING vs. Hisense Home Appliances | CANON MARKETING vs. Luckin Coffee | CANON MARKETING vs. Haier Smart Home |
| Voya Financial vs. CANON MARKETING JP | Voya Financial vs. Tradeweb Markets | Voya Financial vs. TRADELINK ELECTRON | Voya Financial vs. MAG SILVER |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |