Correlation Between Ormat Technologies and CANON MARKETING
Can any of the company-specific risk be diversified away by investing in both Ormat Technologies 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 Ormat Technologies and CANON MARKETING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ormat Technologies and CANON MARKETING JP, you can compare the effects of market volatilities on Ormat Technologies 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 Ormat Technologies with a short position of CANON MARKETING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ormat Technologies and CANON MARKETING.
Diversification Opportunities for Ormat Technologies and CANON MARKETING
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ormat and CANON is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Ormat Technologies and CANON MARKETING JP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CANON MARKETING JP and Ormat Technologies 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 Ormat Technologies 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 JP has no effect on the direction of Ormat Technologies i.e., Ormat Technologies and CANON MARKETING go up and down completely randomly.
Pair Corralation between Ormat Technologies and CANON MARKETING
Assuming the 90 days horizon Ormat Technologies is expected to under-perform the CANON MARKETING. In addition to that, Ormat Technologies is 1.2 times more volatile than CANON MARKETING JP. It trades about -0.11 of its total potential returns per unit of risk. CANON MARKETING JP is currently generating about 0.01 per unit of volatility. If you would invest 3,180 in CANON MARKETING JP on November 3, 2024 and sell it today you would earn a total of 0.00 from holding CANON MARKETING JP 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 |
Ormat Technologies vs. CANON MARKETING JP
Performance |
| Timeline |
| Ormat Technologies |
| CANON MARKETING JP |
Ormat Technologies and CANON MARKETING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ormat Technologies and CANON MARKETING
The main advantage of trading using opposite Ormat Technologies and CANON MARKETING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ormat Technologies 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.| Ormat Technologies vs. Neoen SA | Ormat Technologies vs. TOHOKU EL PWR | Ormat Technologies vs. EnviTec Biogas AG | Ormat Technologies vs. HOKURIKU EL PWR |
| CANON MARKETING vs. Coffee Holding Co | CANON MARKETING vs. SWISS WATER DECAFFCOFFEE | CANON MARKETING vs. CODERE ONLINE LUX | CANON MARKETING vs. MACOM Technology Solutions |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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