Correlation Between Stratasys and Canon
Can any of the company-specific risk be diversified away by investing in both Stratasys 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 Stratasys and Canon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stratasys and Canon Inc, you can compare the effects of market volatilities on Stratasys 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 Stratasys with a short position of Canon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stratasys and Canon.
Diversification Opportunities for Stratasys and Canon
Good diversification
The 3 months correlation between Stratasys and Canon is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Stratasys and Canon Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Canon Inc and Stratasys 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 Stratasys 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 has no effect on the direction of Stratasys i.e., Stratasys and Canon go up and down completely randomly.
Pair Corralation between Stratasys and Canon
Given the investment horizon of 90 days Stratasys is expected to under-perform the Canon. In addition to that, Stratasys is 1.09 times more volatile than Canon Inc. It trades about 0.0 of its total potential returns per unit of risk. Canon Inc is currently generating about 0.05 per unit of volatility. If you would invest 2,020 in Canon Inc on September 2, 2024 and sell it today you would earn a total of 1,081 from holding Canon Inc or generate 53.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 84.88% |
| Values | Daily Returns |
Stratasys vs. Canon Inc
Performance |
| Timeline |
| Stratasys |
| Canon Inc |
Stratasys and Canon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stratasys and Canon
The main advantage of trading using opposite Stratasys and Canon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stratasys 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.| Stratasys vs. Nano Dimension | Stratasys vs. IONQ Inc | Stratasys vs. D Wave Quantum | Stratasys vs. Desktop Metal |
| Canon vs. Quantum Computing | Canon vs. Rigetti Computing | Canon vs. D Wave Quantum | Canon vs. Red Cat Holdings |
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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