Correlation Between Camus Engineering and Cytogen
Can any of the company-specific risk be diversified away by investing in both Camus Engineering and Cytogen 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 Cytogen 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 Cytogen, you can compare the effects of market volatilities on Camus Engineering and Cytogen 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 Cytogen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Camus Engineering and Cytogen.
Diversification Opportunities for Camus Engineering and Cytogen
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Camus and Cytogen is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Camus Engineering Construction and Cytogen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cytogen 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 Cytogen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cytogen has no effect on the direction of Camus Engineering i.e., Camus Engineering and Cytogen go up and down completely randomly.
Pair Corralation between Camus Engineering and Cytogen
Assuming the 90 days trading horizon Camus Engineering Construction is expected to generate 2.08 times more return on investment than Cytogen. However, Camus Engineering is 2.08 times more volatile than Cytogen. It trades about 0.09 of its potential returns per unit of risk. Cytogen is currently generating about -0.32 per unit of risk. If you would invest 137,100 in Camus Engineering Construction on October 17, 2024 and sell it today you would earn a total of 12,900 from holding Camus Engineering Construction or generate 9.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Camus Engineering Construction vs. Cytogen
Performance |
| Timeline |
| Camus Engineering |
| Cytogen |
Camus Engineering and Cytogen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Camus Engineering and Cytogen
The main advantage of trading using opposite Camus Engineering and Cytogen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Camus Engineering position performs unexpectedly, Cytogen 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 Cytogen will offset losses from the drop in Cytogen's long position.| Camus Engineering vs. Daejung Chemicals Metals | Camus Engineering vs. E Investment Development | Camus Engineering vs. PJ Metal Co | Camus Engineering vs. Formetal Co |
| Cytogen vs. Hankook Furniture Co | Cytogen vs. Hyundai Engineering Construction | Cytogen vs. Camus Engineering Construction | Cytogen vs. Hanshin Construction Co |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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