Correlation Between ATOSS SOFTWARE and Canon

Can any of the company-specific risk be diversified away by investing in both ATOSS SOFTWARE 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 ATOSS SOFTWARE and Canon into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between ATOSS SOFTWARE and Canon Inc, you can compare the effects of market volatilities on ATOSS SOFTWARE 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 ATOSS SOFTWARE with a short position of Canon. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATOSS SOFTWARE and Canon.

Diversification Opportunities for ATOSS SOFTWARE and Canon

-0.06

Correlation Coefficient

ATOSS SOFTWARE  Canon

Good diversification

The 3 months correlation between ATOSS and Canon is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding ATOSS SOFTWARE and Canon Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Canon Inc and ATOSS SOFTWARE 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 ATOSS SOFTWARE 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 ATOSS SOFTWARE i.e., ATOSS SOFTWARE and Canon go up and down completely randomly.

Pair Corralation between ATOSS SOFTWARE and Canon

Assuming the 90 days trading horizon ATOSS SOFTWARE is expected to under-perform the Canon. In addition to that, ATOSS SOFTWARE is 1.36 times more volatile than Canon Inc. It trades about -0.09 of its total potential returns per unit of risk. Canon Inc is currently generating about 0.06 per unit of volatility. If you would invest  2,940  in Canon Inc on October 7, 2024 and sell it today you would earn a total of  140.00  from holding Canon Inc or generate 4.76% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

ATOSS SOFTWARE  vs.  Canon Inc

ATOSS SOFTWARE

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ATOSS SOFTWARE has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest fragile performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Canon Inc

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Canon Inc are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, Canon is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with ATOSS SOFTWARE and Canon

The main advantage of trading using opposite ATOSS SOFTWARE and Canon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATOSS SOFTWARE 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.

The idea behind ATOSS SOFTWARE and Canon Inc pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.