Correlation Between CANON MARKETING and ManpowerGroup

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

By analyzing existing cross correlation between CANON MARKETING JP and ManpowerGroup, you can compare the effects of market volatilities on CANON MARKETING and ManpowerGroup 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 ManpowerGroup. Check out your portfolio center. Please also check ongoing floating volatility patterns of CANON MARKETING and ManpowerGroup.

Diversification Opportunities for CANON MARKETING and ManpowerGroup

-0.17

Correlation Coefficient

CANON MARKETING  ManpowerGroup

Good diversification

The 3 months correlation between CANON and ManpowerGroup is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding CANON MARKETING JP and ManpowerGroup in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ManpowerGroup 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 JP are associated (or correlated) with ManpowerGroup. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ManpowerGroup has no effect on the direction of CANON MARKETING i.e., CANON MARKETING and ManpowerGroup go up and down completely randomly.

Pair Corralation between CANON MARKETING and ManpowerGroup

Assuming the 90 days trading horizon CANON MARKETING JP is expected to generate 0.86 times more return on investment than ManpowerGroup. However, CANON MARKETING JP is 1.17 times less risky than ManpowerGroup. It trades about 0.11 of its potential returns per unit of risk. ManpowerGroup is currently generating about 0.04 per unit of risk. If you would invest  2,720  in CANON MARKETING JP on October 23, 2024 and sell it today you would earn a total of  220.00  from holding CANON MARKETING JP or generate 8.09% return on investment over 90 days.

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

CANON MARKETING JP  vs.  ManpowerGroup

CANON MARKETING JP

Risk-Adjusted Performance

8 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in CANON MARKETING JP are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile forward-looking indicators, CANON MARKETING may actually be approaching a critical reversion point that can send shares even higher in February 2025.

ManpowerGroup

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in ManpowerGroup are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, ManpowerGroup is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with CANON MARKETING and ManpowerGroup

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

The idea behind CANON MARKETING JP and ManpowerGroup 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.