Correlation Between Camus Engineering and Sempio Foods
Can any of the company-specific risk be diversified away by investing in both Camus Engineering and Sempio Foods 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 Sempio Foods 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 Sempio Foods Co, you can compare the effects of market volatilities on Camus Engineering and Sempio Foods 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 Sempio Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Camus Engineering and Sempio Foods.
Diversification Opportunities for Camus Engineering and Sempio Foods
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Camus and Sempio is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Camus Engineering Construction and Sempio Foods Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sempio Foods 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 Sempio Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sempio Foods has no effect on the direction of Camus Engineering i.e., Camus Engineering and Sempio Foods go up and down completely randomly.
Pair Corralation between Camus Engineering and Sempio Foods
Assuming the 90 days trading horizon Camus Engineering Construction is expected to generate 0.86 times more return on investment than Sempio Foods. However, Camus Engineering Construction is 1.17 times less risky than Sempio Foods. It trades about -0.04 of its potential returns per unit of risk. Sempio Foods Co is currently generating about -0.08 per unit of risk. If you would invest 143,300 in Camus Engineering Construction on September 21, 2024 and sell it today you would lose (12,300) from holding Camus Engineering Construction or give up 8.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Camus Engineering Construction vs. Sempio Foods Co
Performance |
| Timeline |
| Camus Engineering |
| Sempio Foods |
Camus Engineering and Sempio Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Camus Engineering and Sempio Foods
The main advantage of trading using opposite Camus Engineering and Sempio Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Camus Engineering position performs unexpectedly, Sempio Foods 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 Sempio Foods will offset losses from the drop in Sempio Foods' long position.| Camus Engineering vs. Hyundai Engineering Construction | Camus Engineering vs. Solution Advanced Technology | Camus Engineering vs. Busan Industrial Co | Camus Engineering vs. Busan Ind |
| Sempio Foods vs. Camus Engineering Construction | Sempio Foods vs. Dongbu Insurance Co | Sempio Foods vs. KakaoBank Corp | Sempio Foods vs. Samsung Life Insurance |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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