Correlation Between Camus Engineering and Kumho Petro
Can any of the company-specific risk be diversified away by investing in both Camus Engineering and Kumho Petro 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 Kumho Petro 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 Kumho Petro Chemical, you can compare the effects of market volatilities on Camus Engineering and Kumho Petro 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 Kumho Petro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Camus Engineering and Kumho Petro.
Diversification Opportunities for Camus Engineering and Kumho Petro
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Camus and Kumho is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Camus Engineering Construction and Kumho Petro Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kumho Petro 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 Kumho Petro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kumho Petro Chemical has no effect on the direction of Camus Engineering i.e., Camus Engineering and Kumho Petro go up and down completely randomly.
Pair Corralation between Camus Engineering and Kumho Petro
Assuming the 90 days trading horizon Camus Engineering Construction is expected to generate 1.68 times more return on investment than Kumho Petro. However, Camus Engineering is 1.68 times more volatile than Kumho Petro Chemical. It trades about -0.02 of its potential returns per unit of risk. Kumho Petro Chemical is currently generating about -0.08 per unit of risk. If you would invest 155,868 in Camus Engineering Construction on November 3, 2024 and sell it today you would lose (22,868) from holding Camus Engineering Construction or give up 14.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Camus Engineering Construction vs. Kumho Petro Chemical
Performance |
| Timeline |
| Camus Engineering |
| Kumho Petro Chemical |
Camus Engineering and Kumho Petro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Camus Engineering and Kumho Petro
The main advantage of trading using opposite Camus Engineering and Kumho Petro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Camus Engineering position performs unexpectedly, Kumho Petro 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 Kumho Petro will offset losses from the drop in Kumho Petro's long position.| Camus Engineering vs. Polaris Office Corp | Camus Engineering vs. Seers Technology | Camus Engineering vs. Global Standard Technology | Camus Engineering vs. Eugene Technology CoLtd |
| Kumho Petro vs. Alton Sports CoLtd | Kumho Petro vs. Cube Entertainment | Kumho Petro vs. Next Entertainment World | Kumho Petro vs. MEDIANA CoLtd |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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