Correlation Between Camus Engineering and Moonbae Steel
Can any of the company-specific risk be diversified away by investing in both Camus Engineering and Moonbae Steel 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 Moonbae Steel 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 Moonbae Steel, you can compare the effects of market volatilities on Camus Engineering and Moonbae Steel 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 Moonbae Steel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Camus Engineering and Moonbae Steel.
Diversification Opportunities for Camus Engineering and Moonbae Steel
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Camus and Moonbae is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Camus Engineering Construction and Moonbae Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Moonbae Steel 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 Moonbae Steel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Moonbae Steel has no effect on the direction of Camus Engineering i.e., Camus Engineering and Moonbae Steel go up and down completely randomly.
Pair Corralation between Camus Engineering and Moonbae Steel
Assuming the 90 days trading horizon Camus Engineering Construction is expected to under-perform the Moonbae Steel. But the stock apears to be less risky and, when comparing its historical volatility, Camus Engineering Construction is 1.61 times less risky than Moonbae Steel. The stock trades about -0.05 of its potential returns per unit of risk. The Moonbae Steel is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 238,500 in Moonbae Steel on September 3, 2024 and sell it today you would earn a total of 4,500 from holding Moonbae Steel or generate 1.89% 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. Moonbae Steel
Performance |
| Timeline |
| Camus Engineering |
| Moonbae Steel |
Camus Engineering and Moonbae Steel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Camus Engineering and Moonbae Steel
The main advantage of trading using opposite Camus Engineering and Moonbae Steel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Camus Engineering position performs unexpectedly, Moonbae Steel 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 Moonbae Steel will offset losses from the drop in Moonbae Steel'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 |
| Moonbae Steel vs. LG Chemicals | Moonbae Steel vs. POSCO Holdings | Moonbae Steel vs. Hanwha Solutions | Moonbae Steel vs. Lotte Chemical Corp |
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 CEOs Directory module to screen CEOs from public companies around the world.
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