Correlation Between Canon Electronics and Pattern Group

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

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

Diversification Opportunities for Canon Electronics and Pattern Group

0.03

Correlation Coefficient

Canon Electronics  Pattern Group

Significant diversification

The 3 months correlation between Canon and Pattern is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Canon Electronics and Pattern Group Series in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pattern Group Series and Canon Electronics 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 Electronics are associated (or correlated) with Pattern Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pattern Group Series has no effect on the direction of Canon Electronics i.e., Canon Electronics and Pattern Group go up and down completely randomly.

Pair Corralation between Canon Electronics and Pattern Group

Assuming the 90 days horizon Canon Electronics is expected to generate 0.56 times more return on investment than Pattern Group. However, Canon Electronics is 1.78 times less risky than Pattern Group. It trades about 0.04 of its potential returns per unit of risk. Pattern Group Series is currently generating about -0.01 per unit of risk. If you would invest  1,617  in Canon Electronics on September 3, 2025 and sell it today you would earn a total of  79.00  from holding Canon Electronics or generate 4.89% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	80.95%
Values	Daily Returns

Canon Electronics  vs.  Pattern Group Series

Canon Electronics

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Canon Electronics are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly unfluctuating technical and fundamental indicators, Canon Electronics may actually be approaching a critical reversion point that can send shares even higher in January 2026.

Pattern Group Series

Risk-Adjusted Performance

Weakest

Over the last 90 days Pattern Group Series has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Pattern Group is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Canon Electronics and Pattern Group

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

The idea behind Canon Electronics and Pattern Group Series 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.