Correlation Between CANON MARKETING and M/I Homes

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

Diversification Opportunities for CANON MARKETING and M/I Homes

-0.2

Correlation Coefficient

CANON MARKETING  M/I Homes

Good diversification

The 3 months correlation between CANON and M/I is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding CANON MARKETING JP and MI Homes in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on M/I Homes 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 M/I Homes. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of M/I Homes has no effect on the direction of CANON MARKETING i.e., CANON MARKETING and M/I Homes go up and down completely randomly.

Pair Corralation between CANON MARKETING and M/I Homes

Assuming the 90 days trading horizon CANON MARKETING is expected to generate 3.39 times less return on investment than M/I Homes. But when comparing it to its historical volatility, CANON MARKETING JP is 1.4 times less risky than M/I Homes. It trades about 0.02 of its potential returns per unit of risk. MI Homes is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  9,238  in MI Homes on April 24, 2025 and sell it today you would earn a total of  536.00  from holding MI Homes or generate 5.8% 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.  MI Homes

CANON MARKETING JP

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in CANON MARKETING JP are ranked lower than 1 (%) 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 current stock price uproar, may contribute to short-horizon losses for the private investors.

M/I Homes

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in MI Homes are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, M/I Homes may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with CANON MARKETING and M/I Homes

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

The idea behind CANON MARKETING JP and MI Homes 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.

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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.