Correlation Between Camus Engineering and SK Chemicals
Can any of the company-specific risk be diversified away by investing in both Camus Engineering and SK Chemicals 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 SK Chemicals 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 SK Chemicals Co, you can compare the effects of market volatilities on Camus Engineering and SK Chemicals 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 SK Chemicals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Camus Engineering and SK Chemicals.
Diversification Opportunities for Camus Engineering and SK Chemicals
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Camus and 28513K is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Camus Engineering Construction and SK Chemicals Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SK Chemicals 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 SK Chemicals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SK Chemicals has no effect on the direction of Camus Engineering i.e., Camus Engineering and SK Chemicals go up and down completely randomly.
Pair Corralation between Camus Engineering and SK Chemicals
Assuming the 90 days trading horizon Camus Engineering Construction is expected to generate 3.79 times more return on investment than SK Chemicals. However, Camus Engineering is 3.79 times more volatile than SK Chemicals Co. It trades about 0.06 of its potential returns per unit of risk. SK Chemicals Co is currently generating about -0.11 per unit of risk. If you would invest 135,300 in Camus Engineering Construction on October 18, 2024 and sell it today you would earn a total of 6,700 from holding Camus Engineering Construction or generate 4.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Camus Engineering Construction vs. SK Chemicals Co
Performance |
| Timeline |
| Camus Engineering |
| SK Chemicals |
Camus Engineering and SK Chemicals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Camus Engineering and SK Chemicals
The main advantage of trading using opposite Camus Engineering and SK Chemicals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Camus Engineering position performs unexpectedly, SK Chemicals 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 SK Chemicals will offset losses from the drop in SK Chemicals' long position.| Camus Engineering vs. GS Retail Co | Camus Engineering vs. Grand Korea Leisure | Camus Engineering vs. SungMoon Electronics Co | Camus Engineering vs. LG Display Co |
| SK Chemicals vs. KTB Investment Securities | SK Chemicals vs. Coloray International Investment | SK Chemicals vs. Camus Engineering Construction | SK Chemicals vs. Seoam Machinery Industry |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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