Correlation Between Camus Engineering and Dongwoo Farm
Can any of the company-specific risk be diversified away by investing in both Camus Engineering and Dongwoo Farm 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 Dongwoo Farm 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 Dongwoo Farm To, you can compare the effects of market volatilities on Camus Engineering and Dongwoo Farm 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 Dongwoo Farm. Check out your portfolio center. Please also check ongoing floating volatility patterns of Camus Engineering and Dongwoo Farm.
Diversification Opportunities for Camus Engineering and Dongwoo Farm
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Camus and Dongwoo is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Camus Engineering Construction and Dongwoo Farm To in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dongwoo Farm To 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 Dongwoo Farm. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dongwoo Farm To has no effect on the direction of Camus Engineering i.e., Camus Engineering and Dongwoo Farm go up and down completely randomly.
Pair Corralation between Camus Engineering and Dongwoo Farm
Assuming the 90 days trading horizon Camus Engineering Construction is expected to generate 8.52 times more return on investment than Dongwoo Farm. However, Camus Engineering is 8.52 times more volatile than Dongwoo Farm To. It trades about 0.08 of its potential returns per unit of risk. Dongwoo Farm To is currently generating about 0.13 per unit of risk. If you would invest 129,700 in Camus Engineering Construction on October 24, 2024 and sell it today you would earn a total of 8,700 from holding Camus Engineering Construction or generate 6.71% 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. Dongwoo Farm To
Performance |
| Timeline |
| Camus Engineering |
| Dongwoo Farm To |
Camus Engineering and Dongwoo Farm Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Camus Engineering and Dongwoo Farm
The main advantage of trading using opposite Camus Engineering and Dongwoo Farm positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Camus Engineering position performs unexpectedly, Dongwoo Farm 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 Dongwoo Farm will offset losses from the drop in Dongwoo Farm's long position.| Camus Engineering vs. Pyung Hwa Industrial | Camus Engineering vs. Asiana Airlines | Camus Engineering vs. Eagon Industrial Co | Camus Engineering vs. Namhwa Industrial Co |
| Dongwoo Farm vs. Maeil Dairies Co | Dongwoo Farm vs. HYUNDAI FEED | Dongwoo Farm vs. Neo Cremar Co | Dongwoo Farm vs. Wing Yip Food |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |