Correlation Between GS Engineering and Camus Engineering
Can any of the company-specific risk be diversified away by investing in both GS Engineering 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 GS Engineering and Camus Engineering into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GS Engineering Construction and Camus Engineering Construction, you can compare the effects of market volatilities on GS Engineering 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 GS Engineering with a short position of Camus Engineering. Check out your portfolio center. Please also check ongoing floating volatility patterns of GS Engineering and Camus Engineering.
Diversification Opportunities for GS Engineering and Camus Engineering
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between 006360 and Camus is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding GS Engineering Construction and Camus Engineering Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Camus Engineering and GS Engineering 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 GS Engineering Construction 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 GS Engineering i.e., GS Engineering and Camus Engineering go up and down completely randomly.
Pair Corralation between GS Engineering and Camus Engineering
Assuming the 90 days trading horizon GS Engineering Construction is expected to generate 1.64 times more return on investment than Camus Engineering. However, GS Engineering is 1.64 times more volatile than Camus Engineering Construction. It trades about 0.08 of its potential returns per unit of risk. Camus Engineering Construction is currently generating about -0.05 per unit of risk. If you would invest 1,494,000 in GS Engineering Construction on September 3, 2024 and sell it today you would earn a total of 454,000 from holding GS Engineering Construction or generate 30.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GS Engineering Construction vs. Camus Engineering Construction
Performance |
| Timeline |
| GS Engineering Const |
| Camus Engineering |
GS Engineering and Camus Engineering Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GS Engineering and Camus Engineering
The main advantage of trading using opposite GS Engineering and Camus Engineering positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GS Engineering 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.| GS Engineering vs. AptaBio Therapeutics | GS Engineering vs. Daewoo SBI SPAC | GS Engineering vs. Dream Security co | GS Engineering vs. Microfriend |
| Camus Engineering vs. Moonbae Steel | Camus Engineering vs. DONGKUK STEEL MILL | Camus Engineering vs. INFINITT Healthcare Co | Camus Engineering vs. SCI Information Service |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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