Correlation Between Camus Engineering and BYON
Can any of the company-specific risk be diversified away by investing in both Camus Engineering and BYON 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 BYON 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 BYON Co, you can compare the effects of market volatilities on Camus Engineering and BYON 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 BYON. Check out your portfolio center. Please also check ongoing floating volatility patterns of Camus Engineering and BYON.
Diversification Opportunities for Camus Engineering and BYON
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Camus and BYON is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Camus Engineering Construction and BYON Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BYON 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 BYON. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BYON has no effect on the direction of Camus Engineering i.e., Camus Engineering and BYON go up and down completely randomly.
Pair Corralation between Camus Engineering and BYON
Assuming the 90 days trading horizon Camus Engineering Construction is expected to under-perform the BYON. But the stock apears to be less risky and, when comparing its historical volatility, Camus Engineering Construction is 3.21 times less risky than BYON. The stock trades about -0.05 of its potential returns per unit of risk. The BYON Co is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 62,000 in BYON Co on September 1, 2024 and sell it today you would earn a total of 21,000 from holding BYON Co or generate 33.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Camus Engineering Construction vs. BYON Co
Performance |
| Timeline |
| Camus Engineering |
| BYON |
Camus Engineering and BYON Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Camus Engineering and BYON
The main advantage of trading using opposite Camus Engineering and BYON positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Camus Engineering position performs unexpectedly, BYON 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 BYON will offset losses from the drop in BYON's long position.| Camus Engineering vs. Samsung CT Corp | Camus Engineering vs. Hyundai Engineering Construction | Camus Engineering vs. Kolon Globalco |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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