Correlation Between Camus Engineering and Hyundai Engineering
Can any of the company-specific risk be diversified away by investing in both Camus Engineering and Hyundai 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 Hyundai 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 Hyundai Engineering Plastics, you can compare the effects of market volatilities on Camus Engineering and Hyundai 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 Hyundai Engineering. Check out your portfolio center. Please also check ongoing floating volatility patterns of Camus Engineering and Hyundai Engineering.
Diversification Opportunities for Camus Engineering and Hyundai Engineering
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Camus and Hyundai is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Camus Engineering Construction and Hyundai Engineering Plastics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hyundai Engineering 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 Hyundai Engineering. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hyundai Engineering has no effect on the direction of Camus Engineering i.e., Camus Engineering and Hyundai Engineering go up and down completely randomly.
Pair Corralation between Camus Engineering and Hyundai Engineering
Assuming the 90 days trading horizon Camus Engineering Construction is expected to generate 4.16 times more return on investment than Hyundai Engineering. However, Camus Engineering is 4.16 times more volatile than Hyundai Engineering Plastics. It trades about 0.21 of its potential returns per unit of risk. Hyundai Engineering Plastics is currently generating about 0.18 per unit of risk. If you would invest 132,600 in Camus Engineering Construction on October 11, 2024 and sell it today you would earn a total of 38,700 from holding Camus Engineering Construction or generate 29.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Camus Engineering Construction vs. Hyundai Engineering Plastics
Performance |
| Timeline |
| Camus Engineering |
| Hyundai Engineering |
Camus Engineering and Hyundai Engineering Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Camus Engineering and Hyundai Engineering
The main advantage of trading using opposite Camus Engineering and Hyundai Engineering positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Camus Engineering position performs unexpectedly, Hyundai 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 Hyundai Engineering will offset losses from the drop in Hyundai Engineering's long position.| Camus Engineering vs. EV Advanced Material | Camus Engineering vs. Top Material Co | Camus Engineering vs. Daejoo Electronic Materials | Camus Engineering vs. Ecoplastic |
| Hyundai Engineering vs. Camus Engineering Construction | Hyundai Engineering vs. GS Engineering Construction | Hyundai Engineering vs. Air Busan Co | Hyundai Engineering vs. Dongbang Ship Machinery |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |