Correlation Between Globe Trade and Canon Marketing
Can any of the company-specific risk be diversified away by investing in both Globe Trade and Canon Marketing 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 Globe Trade and Canon Marketing into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Globe Trade Centre and Canon Marketing Japan, you can compare the effects of market volatilities on Globe Trade and Canon Marketing 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 Globe Trade with a short position of Canon Marketing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Globe Trade and Canon Marketing.
Diversification Opportunities for Globe Trade and Canon Marketing
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Globe and Canon is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Globe Trade Centre and Canon Marketing Japan in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Canon Marketing Japan and Globe Trade 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 Globe Trade Centre are associated (or correlated) with Canon Marketing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Canon Marketing Japan has no effect on the direction of Globe Trade i.e., Globe Trade and Canon Marketing go up and down completely randomly.
Pair Corralation between Globe Trade and Canon Marketing
Assuming the 90 days trading horizon Globe Trade Centre is expected to generate 1.9 times more return on investment than Canon Marketing. However, Globe Trade is 1.9 times more volatile than Canon Marketing Japan. It trades about 0.05 of its potential returns per unit of risk. Canon Marketing Japan is currently generating about 0.09 per unit of risk. If you would invest 91.00 in Globe Trade Centre on September 5, 2024 and sell it today you would earn a total of 10.00 from holding Globe Trade Centre or generate 10.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.85% |
| Values | Daily Returns |
Globe Trade Centre vs. Canon Marketing Japan
Performance |
| Timeline |
| Globe Trade Centre |
| Canon Marketing Japan |
Globe Trade and Canon Marketing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Globe Trade and Canon Marketing
The main advantage of trading using opposite Globe Trade and Canon Marketing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Globe Trade position performs unexpectedly, Canon Marketing 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 Canon Marketing will offset losses from the drop in Canon Marketing's long position.| Globe Trade vs. TOTAL GABON | Globe Trade vs. Walgreens Boots Alliance | Globe Trade vs. Peak Resources Limited |
| Canon Marketing vs. Evolution Mining Limited | Canon Marketing vs. Western Copper and | Canon Marketing vs. CARSALESCOM | Canon Marketing vs. Jacquet Metal Service |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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