Correlation Between Camus Engineering and SH Energy
Can any of the company-specific risk be diversified away by investing in both Camus Engineering and SH Energy 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 SH Energy 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 SH Energy Chemical, you can compare the effects of market volatilities on Camus Engineering and SH Energy 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 SH Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Camus Engineering and SH Energy.
Diversification Opportunities for Camus Engineering and SH Energy
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Camus and 002360 is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Camus Engineering Construction and SH Energy Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SH Energy Chemical 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 SH Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SH Energy Chemical has no effect on the direction of Camus Engineering i.e., Camus Engineering and SH Energy go up and down completely randomly.
Pair Corralation between Camus Engineering and SH Energy
Assuming the 90 days trading horizon Camus Engineering Construction is expected to generate 4.72 times more return on investment than SH Energy. However, Camus Engineering is 4.72 times more volatile than SH Energy Chemical. It trades about 0.07 of its potential returns per unit of risk. SH Energy Chemical is currently generating about -0.06 per unit of risk. If you would invest 126,000 in Camus Engineering Construction on October 29, 2024 and sell it today you would earn a total of 7,800 from holding Camus Engineering Construction or generate 6.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Camus Engineering Construction vs. SH Energy Chemical
Performance |
| Timeline |
| Camus Engineering |
| SH Energy Chemical |
Camus Engineering and SH Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Camus Engineering and SH Energy
The main advantage of trading using opposite Camus Engineering and SH Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Camus Engineering position performs unexpectedly, SH Energy 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 SH Energy will offset losses from the drop in SH Energy's long position.| Camus Engineering vs. KPX Green Chemical | Camus Engineering vs. Kyung In Synthetic Corp | Camus Engineering vs. Hanil Chemical Ind | Camus Engineering vs. Sung Bo Chemicals |
| SH Energy vs. Inzi Display CoLtd | SH Energy vs. Playgram Co | SH Energy vs. Jeju Semiconductor Corp | SH Energy vs. Hotel Shilla Co |
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.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Stocks Directory Find actively traded stocks across global markets | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |