Correlation Between Performance Food and Canon Marketing
Can any of the company-specific risk be diversified away by investing in both Performance Food and Canon Marketing 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 Performance Food and Canon Marketing into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Performance Food Group and Canon Marketing Japan, you can compare the effects of market volatilities on Performance Food and Canon Marketing 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 Performance Food with a short position of Canon Marketing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Performance Food and Canon Marketing.
Diversification Opportunities for Performance Food and Canon Marketing
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Performance and Canon is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Performance Food Group and Canon Marketing Japan in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Canon Marketing Japan and Performance Food 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 Performance Food Group are associated (or correlated) with Canon Marketing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Canon Marketing Japan has no effect on the direction of Performance Food i.e., Performance Food and Canon Marketing go up and down completely randomly.
Pair Corralation between Performance Food and Canon Marketing
Assuming the 90 days trading horizon Performance Food is expected to generate 4.12 times less return on investment than Canon Marketing. But when comparing it to its historical volatility, Performance Food Group is 1.02 times less risky than Canon Marketing. It trades about 0.04 of its potential returns per unit of risk. Canon Marketing Japan is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 2,920 in Canon Marketing Japan on November 15, 2024 and sell it today you would earn a total of 360.00 from holding Canon Marketing Japan or generate 12.33% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Performance Food Group vs. Canon Marketing Japan
Performance |
Timeline |
Performance Food |
Canon Marketing Japan |
Performance Food and Canon Marketing Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Performance Food and Canon Marketing
The main advantage of trading using opposite Performance Food and Canon Marketing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Performance Food position performs unexpectedly, Canon Marketing 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 Marketing will offset losses from the drop in Canon Marketing's long position.Performance Food vs. The Hanover Insurance | ||
Performance Food vs. HomeToGo SE | ||
Performance Food vs. PANIN INSURANCE | ||
Performance Food vs. Autohome ADR |
Canon Marketing vs. CDL INVESTMENT | ||
Canon Marketing vs. Siamgas And Petrochemicals | ||
Canon Marketing vs. PennyMac Mortgage Investment | ||
Canon Marketing vs. Apollo Investment Corp |
Check out your portfolio center.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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
Bonds Directory Find actively traded corporate debentures issued by US companies | |
Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |