Correlation Between CANON MARKETING and ATRESMEDIA

Can any of the company-specific risk be diversified away by investing in both CANON MARKETING and ATRESMEDIA 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 ATRESMEDIA 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 ATRESMEDIA, you can compare the effects of market volatilities on CANON MARKETING and ATRESMEDIA 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 ATRESMEDIA. Check out your portfolio center. Please also check ongoing floating volatility patterns of CANON MARKETING and ATRESMEDIA.

Diversification Opportunities for CANON MARKETING and ATRESMEDIA

0.24

Correlation Coefficient

CANON MARKETING  ATRESMEDIA

Modest diversification

The 3 months correlation between CANON and ATRESMEDIA is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding CANON MARKETING JP and ATRESMEDIA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATRESMEDIA 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 ATRESMEDIA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATRESMEDIA has no effect on the direction of CANON MARKETING i.e., CANON MARKETING and ATRESMEDIA go up and down completely randomly.

Pair Corralation between CANON MARKETING and ATRESMEDIA

Assuming the 90 days trading horizon CANON MARKETING JP is expected to generate 1.34 times more return on investment than ATRESMEDIA. However, CANON MARKETING is 1.34 times more volatile than ATRESMEDIA. It trades about 0.06 of its potential returns per unit of risk. ATRESMEDIA is currently generating about 0.08 per unit of risk. If you would invest  2,980  in CANON MARKETING JP on September 13, 2024 and sell it today you would earn a total of  140.00  from holding CANON MARKETING JP or generate 4.7% return on investment over 90 days.

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

CANON MARKETING JP  vs.  ATRESMEDIA

CANON MARKETING JP

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in CANON MARKETING JP are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable forward-looking indicators, CANON MARKETING is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

ATRESMEDIA

Risk-Adjusted Performance

6 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in ATRESMEDIA are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound technical and fundamental indicators, ATRESMEDIA 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 ATRESMEDIA

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

The idea behind CANON MARKETING JP and ATRESMEDIA 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.