Correlation Between FLOW TRADERS and Canon Marketing
Can any of the company-specific risk be diversified away by investing in both FLOW TRADERS 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 FLOW TRADERS and Canon Marketing into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FLOW TRADERS LTD and Canon Marketing Japan, you can compare the effects of market volatilities on FLOW TRADERS 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 FLOW TRADERS with a short position of Canon Marketing. Check out your portfolio center. Please also check ongoing floating volatility patterns of FLOW TRADERS and Canon Marketing.
Diversification Opportunities for FLOW TRADERS and Canon Marketing
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between FLOW and Canon is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding FLOW TRADERS LTD 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 FLOW TRADERS 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 FLOW TRADERS LTD 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 FLOW TRADERS i.e., FLOW TRADERS and Canon Marketing go up and down completely randomly.
Pair Corralation between FLOW TRADERS and Canon Marketing
Assuming the 90 days horizon FLOW TRADERS LTD is expected to under-perform the Canon Marketing. In addition to that, FLOW TRADERS is 1.06 times more volatile than Canon Marketing Japan. It trades about -0.03 of its total potential returns per unit of risk. Canon Marketing Japan is currently generating about 0.32 per unit of volatility. If you would invest 2,620 in Canon Marketing Japan on August 25, 2024 and sell it today you would earn a total of 240.00 from holding Canon Marketing Japan or generate 9.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
FLOW TRADERS LTD vs. Canon Marketing Japan
Performance |
| Timeline |
| FLOW TRADERS LTD |
| Canon Marketing Japan |
FLOW TRADERS and Canon Marketing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FLOW TRADERS and Canon Marketing
The main advantage of trading using opposite FLOW TRADERS and Canon Marketing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FLOW TRADERS 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.| FLOW TRADERS vs. Macquarie Group Limited | FLOW TRADERS vs. MSCI Inc | FLOW TRADERS vs. Superior Plus Corp | FLOW TRADERS vs. NMI Holdings |
| Canon Marketing vs. Canon Inc | Canon Marketing vs. Superior Plus Corp | Canon Marketing vs. NMI Holdings | Canon Marketing vs. Origin Agritech |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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