Correlation Between Sony Group and CANON MARKETING
Can any of the company-specific risk be diversified away by investing in both Sony Group 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 Sony Group and CANON MARKETING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sony Group Corp and CANON MARKETING JP, you can compare the effects of market volatilities on Sony Group 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 Sony Group with a short position of CANON MARKETING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sony Group and CANON MARKETING.
Diversification Opportunities for Sony Group and CANON MARKETING
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sony and CANON is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Sony Group Corp 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 Sony Group 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 Sony Group Corp 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 Sony Group i.e., Sony Group and CANON MARKETING go up and down completely randomly.
Pair Corralation between Sony Group and CANON MARKETING
Assuming the 90 days trading horizon Sony Group Corp is expected to generate 4.78 times more return on investment than CANON MARKETING. However, Sony Group is 4.78 times more volatile than CANON MARKETING JP. It trades about 0.05 of its potential returns per unit of risk. CANON MARKETING JP is currently generating about 0.06 per unit of risk. If you would invest 795.00 in Sony Group Corp on September 4, 2024 and sell it today you would earn a total of 1,098 from holding Sony Group Corp or generate 138.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sony Group Corp vs. CANON MARKETING JP
Performance |
| Timeline |
| Sony Group Corp |
| CANON MARKETING JP |
Sony Group and CANON MARKETING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sony Group and CANON MARKETING
The main advantage of trading using opposite Sony Group and CANON MARKETING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sony Group 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.| Sony Group vs. Jacquet Metal Service | Sony Group vs. Entravision Communications | Sony Group vs. Perseus Mining Limited | Sony Group vs. Computer And Technologies |
| 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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