Correlation Between Camus Engineering and Korean Reinsurance
Can any of the company-specific risk be diversified away by investing in both Camus Engineering and Korean Reinsurance 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 Reinsurance 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 Reinsurance Co, you can compare the effects of market volatilities on Camus Engineering and Korean Reinsurance 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 Reinsurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Camus Engineering and Korean Reinsurance.
Diversification Opportunities for Camus Engineering and Korean Reinsurance
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Camus and Korean is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Camus Engineering Construction and Korean Reinsurance Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Korean Reinsurance 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 Reinsurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Korean Reinsurance has no effect on the direction of Camus Engineering i.e., Camus Engineering and Korean Reinsurance go up and down completely randomly.
Pair Corralation between Camus Engineering and Korean Reinsurance
Assuming the 90 days trading horizon Camus Engineering Construction is expected to generate 4.96 times more return on investment than Korean Reinsurance. However, Camus Engineering is 4.96 times more volatile than Korean Reinsurance Co. It trades about 0.04 of its potential returns per unit of risk. Korean Reinsurance Co is currently generating about 0.09 per unit of risk. 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 |
Camus Engineering Construction vs. Korean Reinsurance Co
Performance |
| Timeline |
| Camus Engineering |
| Korean Reinsurance |
Camus Engineering and Korean Reinsurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Camus Engineering and Korean Reinsurance
The main advantage of trading using opposite Camus Engineering and Korean Reinsurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Camus Engineering position performs unexpectedly, Korean Reinsurance 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 Reinsurance will offset losses from the drop in Korean Reinsurance's long position.| Camus Engineering vs. Tway Air Co | Camus Engineering vs. Puloon Technology | Camus Engineering vs. Digital Imaging Technology | Camus Engineering vs. InnoTherapy |
| Korean Reinsurance vs. KyungIn Electronics Co | Korean Reinsurance vs. Daeduck Electronics Co | Korean Reinsurance vs. Seoul Electronics Telecom | Korean Reinsurance vs. Daewoo Electronic Components |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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