Correlation Between Canon Marketing and Expeditors International

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

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

Diversification Opportunities for Canon Marketing and Expeditors International

0.04

Correlation Coefficient

Canon Marketing  Expeditors International

Significant diversification

The 3 months correlation between Canon and Expeditors is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Canon Marketing Japan and Expeditors International of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Expeditors International and Canon Marketing 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 Marketing Japan are associated (or correlated) with Expeditors International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Expeditors International has no effect on the direction of Canon Marketing i.e., Canon Marketing and Expeditors International go up and down completely randomly.

Pair Corralation between Canon Marketing and Expeditors International

Assuming the 90 days horizon Canon Marketing Japan is expected to generate 1.87 times more return on investment than Expeditors International. However, Canon Marketing is 1.87 times more volatile than Expeditors International of. It trades about 0.11 of its potential returns per unit of risk. Expeditors International of is currently generating about -0.41 per unit of risk. If you would invest  3,100  in Canon Marketing Japan on October 10, 2024 and sell it today you would earn a total of  80.00  from holding Canon Marketing Japan or generate 2.58% return on investment over 90 days.

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

Canon Marketing Japan  vs.  Expeditors International of

Canon Marketing Japan

Risk-Adjusted Performance

9 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Canon Marketing Japan are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Canon Marketing may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Expeditors International

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Expeditors International of has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Expeditors International is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Canon Marketing and Expeditors International

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

The idea behind Canon Marketing Japan and Expeditors International of 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..