Correlation Between Peak Resources and CANON MARKETING
Can any of the company-specific risk be diversified away by investing in both Peak Resources 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 Peak Resources and CANON MARKETING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Peak Resources Limited and CANON MARKETING JP, you can compare the effects of market volatilities on Peak Resources 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 Peak Resources with a short position of CANON MARKETING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Peak Resources and CANON MARKETING.
Diversification Opportunities for Peak Resources and CANON MARKETING
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Peak and CANON is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Peak Resources Limited 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 Peak Resources 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 Peak Resources Limited 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 Peak Resources i.e., Peak Resources and CANON MARKETING go up and down completely randomly.
Pair Corralation between Peak Resources and CANON MARKETING
Assuming the 90 days horizon Peak Resources Limited is expected to under-perform the CANON MARKETING. In addition to that, Peak Resources is 6.64 times more volatile than CANON MARKETING JP. It trades about -0.04 of its total potential returns per unit of risk. CANON MARKETING JP is currently generating about 0.1 per unit of volatility. If you would invest 2,800 in CANON MARKETING JP on September 3, 2024 and sell it today you would earn a total of 240.00 from holding CANON MARKETING JP or generate 8.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Peak Resources Limited vs. CANON MARKETING JP
Performance |
| Timeline |
| Peak Resources |
| CANON MARKETING JP |
Peak Resources and CANON MARKETING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Peak Resources and CANON MARKETING
The main advantage of trading using opposite Peak Resources and CANON MARKETING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Peak Resources 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.| Peak Resources vs. Peak Minerals Limited | Peak Resources vs. Anheuser Busch InBev SANV | Peak Resources vs. AALBERTS IND | Peak Resources vs. SECURITAS B |
| CANON MARKETING vs. TOTAL GABON | CANON MARKETING vs. Walgreens Boots Alliance | CANON MARKETING vs. Peak Resources Limited |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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