Correlation Between Canon and Voxeljet

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

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

Diversification Opportunities for Canon and Voxeljet

0.42

Correlation Coefficient

Canon  Voxeljet

Very weak diversification

The 3 months correlation between Canon and Voxeljet is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Canon Inc and Voxeljet Ag in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voxeljet Ag and Canon 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 Canon Inc are associated (or correlated) with Voxeljet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voxeljet Ag has no effect on the direction of Canon i.e., Canon and Voxeljet go up and down completely randomly.

Pair Corralation between Canon and Voxeljet

If you would invest  164.00  in Voxeljet Ag on September 11, 2024 and sell it today you would earn a total of  0.00  from holding Voxeljet Ag or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	1.59%
Values	Daily Returns

Canon Inc  vs.  Voxeljet Ag

Canon Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Canon Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical and fundamental indicators, Canon is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

Voxeljet Ag

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Voxeljet Ag has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable technical and fundamental indicators, Voxeljet is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Canon and Voxeljet

The main advantage of trading using opposite Canon and Voxeljet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canon position performs unexpectedly, Voxeljet 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 Voxeljet will offset losses from the drop in Voxeljet's long position.

The idea behind Canon Inc and Voxeljet Ag 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..