Correlation Between Plexus Corp and Canon
Can any of the company-specific risk be diversified away by investing in both Plexus Corp and Canon 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 Plexus Corp and Canon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Plexus Corp and Canon Inc ADR, you can compare the effects of market volatilities on Plexus Corp and Canon 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 Plexus Corp with a short position of Canon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Plexus Corp and Canon.
Diversification Opportunities for Plexus Corp and Canon
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Plexus and Canon is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Plexus Corp and Canon Inc ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Canon Inc ADR and Plexus Corp 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 Plexus Corp are associated (or correlated) with Canon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Canon Inc ADR has no effect on the direction of Plexus Corp i.e., Plexus Corp and Canon go up and down completely randomly.
Pair Corralation between Plexus Corp and Canon
If you would invest 15,936 in Plexus Corp on October 24, 2024 and sell it today you would earn a total of 800.00 from holding Plexus Corp or generate 5.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 5.56% |
| Values | Daily Returns |
Plexus Corp vs. Canon Inc ADR
Performance |
| Timeline |
| Plexus Corp |
| Canon Inc ADR |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Plexus Corp and Canon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Plexus Corp and Canon
The main advantage of trading using opposite Plexus Corp and Canon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Plexus Corp position performs unexpectedly, Canon 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 will offset losses from the drop in Canon's long position.| Plexus Corp vs. Celestica | Plexus Corp vs. Benchmark Electronics | Plexus Corp vs. Flex | Plexus Corp vs. Jabil Circuit |
| Canon vs. NuRAN Wireless | Canon vs. Summit Materials | Canon vs. National CineMedia | Canon vs. Modine Manufacturing |
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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