Correlation Between Ricoh Company and Canon Marketing

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

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

Diversification Opportunities for Ricoh Company and Canon Marketing

-0.03

Correlation Coefficient

Ricoh Company  Canon Marketing

Good diversification

The 3 months correlation between Ricoh and Canon is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Ricoh Company 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 Ricoh Company 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 Ricoh Company 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 Ricoh Company i.e., Ricoh Company and Canon Marketing go up and down completely randomly.

Pair Corralation between Ricoh Company and Canon Marketing

Assuming the 90 days trading horizon Ricoh Company is expected to generate 1.36 times more return on investment than Canon Marketing. However, Ricoh Company is 1.36 times more volatile than Canon Marketing Japan. It trades about 0.04 of its potential returns per unit of risk. Canon Marketing Japan is currently generating about -0.16 per unit of risk. If you would invest  795.00  in Ricoh Company on April 5, 2025 and sell it today you would earn a total of  10.00  from holding Ricoh Company or generate 1.26% return on investment over 90 days.

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

Ricoh Company  vs.  Canon Marketing Japan

Ricoh Company

Risk-Adjusted Performance

Very Weak

Over the last 90 days Ricoh Company has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable fundamental indicators, Ricoh Company is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Canon Marketing Japan

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Canon Marketing Japan are ranked lower than 5 (%) 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 August 2025.

Pair Trading with Ricoh Company and Canon Marketing

The main advantage of trading using opposite Ricoh Company and Canon Marketing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ricoh Company 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.

The idea behind Ricoh Company and Canon Marketing Japan 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.