Correlation Between Camus Engineering and Hanjin Transportation
Can any of the company-specific risk be diversified away by investing in both Camus Engineering and Hanjin Transportation 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 Camus Engineering and Hanjin Transportation into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Camus Engineering Construction and Hanjin Transportation Co, you can compare the effects of market volatilities on Camus Engineering and Hanjin Transportation 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 Camus Engineering with a short position of Hanjin Transportation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Camus Engineering and Hanjin Transportation.
Diversification Opportunities for Camus Engineering and Hanjin Transportation
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Camus and Hanjin is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Camus Engineering Construction and Hanjin Transportation Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hanjin Transportation and Camus 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 Camus Engineering Construction are associated (or correlated) with Hanjin Transportation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hanjin Transportation has no effect on the direction of Camus Engineering i.e., Camus Engineering and Hanjin Transportation go up and down completely randomly.
Pair Corralation between Camus Engineering and Hanjin Transportation
Assuming the 90 days trading horizon Camus Engineering Construction is expected to under-perform the Hanjin Transportation. In addition to that, Camus Engineering is 1.41 times more volatile than Hanjin Transportation Co. It trades about -0.07 of its total potential returns per unit of risk. Hanjin Transportation Co is currently generating about -0.01 per unit of volatility. If you would invest 1,906,000 in Hanjin Transportation Co on August 29, 2024 and sell it today you would lose (8,000) from holding Hanjin Transportation Co or give up 0.42% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Camus Engineering Construction vs. Hanjin Transportation Co
Performance |
| Timeline |
| Camus Engineering |
| Hanjin Transportation |
Camus Engineering and Hanjin Transportation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Camus Engineering and Hanjin Transportation
The main advantage of trading using opposite Camus Engineering and Hanjin Transportation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Camus Engineering position performs unexpectedly, Hanjin Transportation 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 Hanjin Transportation will offset losses from the drop in Hanjin Transportation's long position.| Camus Engineering vs. Coloray International Investment | Camus Engineering vs. Orbitech Co | Camus Engineering vs. Sangsangin Investment Securities | Camus Engineering vs. E Investment Development |
| Hanjin Transportation vs. AptaBio Therapeutics | Hanjin Transportation vs. Daewoo SBI SPAC | Hanjin Transportation vs. Dream Security co | Hanjin Transportation vs. Microfriend |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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