Correlation Between Camus Engineering and GS Engineering
Can any of the company-specific risk be diversified away by investing in both Camus Engineering and GS 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 Camus Engineering and GS Engineering 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 GS Engineering Construction, you can compare the effects of market volatilities on Camus Engineering and GS 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 Camus Engineering with a short position of GS Engineering. Check out your portfolio center. Please also check ongoing floating volatility patterns of Camus Engineering and GS Engineering.
Diversification Opportunities for Camus Engineering and GS Engineering
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Camus and 006360 is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Camus Engineering Construction and GS Engineering Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GS Engineering Const 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 GS Engineering. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GS Engineering Const has no effect on the direction of Camus Engineering i.e., Camus Engineering and GS Engineering go up and down completely randomly.
Pair Corralation between Camus Engineering and GS Engineering
Assuming the 90 days trading horizon Camus Engineering Construction is expected to under-perform the GS Engineering. But the stock apears to be less risky and, when comparing its historical volatility, Camus Engineering Construction is 1.15 times less risky than GS Engineering. The stock trades about -0.05 of its potential returns per unit of risk. The GS Engineering Construction is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 1,770,000 in GS Engineering Construction on September 3, 2024 and sell it today you would earn a total of 178,000 from holding GS Engineering Construction or generate 10.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Camus Engineering Construction vs. GS Engineering Construction
Performance |
| Timeline |
| Camus Engineering |
| GS Engineering Const |
Camus Engineering and GS Engineering Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Camus Engineering and GS Engineering
The main advantage of trading using opposite Camus Engineering and GS Engineering positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Camus Engineering position performs unexpectedly, GS 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 GS Engineering will offset losses from the drop in GS Engineering's long position.| Camus Engineering vs. Moonbae Steel | Camus Engineering vs. DONGKUK STEEL MILL | Camus Engineering vs. INFINITT Healthcare Co | Camus Engineering vs. SCI Information Service |
| GS Engineering vs. AptaBio Therapeutics | GS Engineering vs. Daewoo SBI SPAC | GS Engineering vs. Dream Security co | GS Engineering 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |