Correlation Between Camus Engineering and Korean Air
Can any of the company-specific risk be diversified away by investing in both Camus Engineering and Korean Air 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 Korean Air 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 Korean Air Lines, you can compare the effects of market volatilities on Camus Engineering and Korean Air 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 Korean Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of Camus Engineering and Korean Air.
Diversification Opportunities for Camus Engineering and Korean Air
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Camus and Korean is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Camus Engineering Construction and Korean Air Lines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Korean Air Lines 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 Korean Air. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Korean Air Lines has no effect on the direction of Camus Engineering i.e., Camus Engineering and Korean Air go up and down completely randomly.
Pair Corralation between Camus Engineering and Korean Air
Assuming the 90 days trading horizon Camus Engineering Construction is expected to generate 3.9 times more return on investment than Korean Air. However, Camus Engineering is 3.9 times more volatile than Korean Air Lines. It trades about 0.13 of its potential returns per unit of risk. Korean Air Lines is currently generating about -0.18 per unit of risk. If you would invest 134,800 in Camus Engineering Construction on October 14, 2024 and sell it today you would earn a total of 21,000 from holding Camus Engineering Construction or generate 15.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Camus Engineering Construction vs. Korean Air Lines
Performance |
| Timeline |
| Camus Engineering |
| Korean Air Lines |
Camus Engineering and Korean Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Camus Engineering and Korean Air
The main advantage of trading using opposite Camus Engineering and Korean Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Camus Engineering position performs unexpectedly, Korean Air 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 Korean Air will offset losses from the drop in Korean Air's long position.| Camus Engineering vs. Lotte Non Life Insurance | Camus Engineering vs. Sangsin Energy Display | Camus Engineering vs. Daishin Information Communications | Camus Engineering vs. Lotte Data Communication |
| Korean Air vs. Seoam Machinery Industry | Korean Air vs. Camus Engineering Construction | Korean Air vs. Nice Information Telecommunication | Korean Air vs. Kisan Telecom 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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