Correlation Between Korean Reinsurance and Camus Engineering
Can any of the company-specific risk be diversified away by investing in both Korean Reinsurance and Camus Engineering 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 Korean Reinsurance and Camus Engineering into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Korean Reinsurance Co and Camus Engineering Construction, you can compare the effects of market volatilities on Korean Reinsurance and Camus Engineering 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 Korean Reinsurance with a short position of Camus Engineering. Check out your portfolio center. Please also check ongoing floating volatility patterns of Korean Reinsurance and Camus Engineering.
Diversification Opportunities for Korean Reinsurance and Camus Engineering
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Korean and Camus is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Korean Reinsurance Co and Camus Engineering Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Camus Engineering and Korean Reinsurance 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 Korean Reinsurance Co are associated (or correlated) with Camus Engineering. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Camus Engineering has no effect on the direction of Korean Reinsurance i.e., Korean Reinsurance and Camus Engineering go up and down completely randomly.
Pair Corralation between Korean Reinsurance and Camus Engineering
Assuming the 90 days trading horizon Korean Reinsurance is expected to generate 2.12 times less return on investment than Camus Engineering. But when comparing it to its historical volatility, Korean Reinsurance Co is 4.96 times less risky than Camus Engineering. It trades about 0.09 of its potential returns per unit of risk. Camus Engineering Construction is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 131,400 in Camus Engineering Construction on November 3, 2024 and sell it today you would earn a total of 1,600 from holding Camus Engineering Construction or generate 1.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Korean Reinsurance Co vs. Camus Engineering Construction
Performance |
| Timeline |
| Korean Reinsurance |
| Camus Engineering |
Korean Reinsurance and Camus Engineering Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Korean Reinsurance and Camus Engineering
The main advantage of trading using opposite Korean Reinsurance and Camus Engineering positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Korean Reinsurance position performs unexpectedly, Camus Engineering 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 Camus Engineering will offset losses from the drop in Camus Engineering's long position.| Korean Reinsurance vs. KyungIn Electronics Co | Korean Reinsurance vs. Daeduck Electronics Co | Korean Reinsurance vs. Seoul Electronics Telecom | Korean Reinsurance vs. Daewoo Electronic Components |
| Camus Engineering vs. Tway Air Co | Camus Engineering vs. Puloon Technology | Camus Engineering vs. Digital Imaging Technology | Camus Engineering vs. InnoTherapy |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |