Correlation Between Camus Engineering and Solution Advanced
Can any of the company-specific risk be diversified away by investing in both Camus Engineering and Solution Advanced 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 Solution Advanced 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 Solution Advanced Technology, you can compare the effects of market volatilities on Camus Engineering and Solution Advanced 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 Solution Advanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Camus Engineering and Solution Advanced.
Diversification Opportunities for Camus Engineering and Solution Advanced
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Camus and Solution is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Camus Engineering Construction and Solution Advanced Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Solution Advanced 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 Solution Advanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Solution Advanced has no effect on the direction of Camus Engineering i.e., Camus Engineering and Solution Advanced go up and down completely randomly.
Pair Corralation between Camus Engineering and Solution Advanced
Assuming the 90 days trading horizon Camus Engineering Construction is expected to generate 0.57 times more return on investment than Solution Advanced. However, Camus Engineering Construction is 1.77 times less risky than Solution Advanced. It trades about -0.03 of its potential returns per unit of risk. Solution Advanced Technology is currently generating about -0.05 per unit of risk. If you would invest 178,142 in Camus Engineering Construction on October 7, 2024 and sell it today you would lose (47,242) from holding Camus Engineering Construction or give up 26.52% 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. Solution Advanced Technology
Performance |
| Timeline |
| Camus Engineering |
| Solution Advanced |
Camus Engineering and Solution Advanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Camus Engineering and Solution Advanced
The main advantage of trading using opposite Camus Engineering and Solution Advanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Camus Engineering position performs unexpectedly, Solution Advanced 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 Solution Advanced will offset losses from the drop in Solution Advanced's long position.| Camus Engineering vs. Hyundai Engineering Construction | Camus Engineering vs. KEPCO Engineering Construction | Camus Engineering vs. Busan Industrial Co | Camus Engineering vs. Busan Ind |
| Solution Advanced vs. Daejung Chemicals Metals | Solution Advanced vs. Vitzro Tech Co | Solution Advanced vs. PNC Technologies co | Solution Advanced vs. Raontech |
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 Directory module to find actively traded commodities issued by global exchanges.
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