Correlation Between Camus Engineering and Raontech
Can any of the company-specific risk be diversified away by investing in both Camus Engineering and Raontech 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 Raontech 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 Raontech, you can compare the effects of market volatilities on Camus Engineering and Raontech 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 Raontech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Camus Engineering and Raontech.
Diversification Opportunities for Camus Engineering and Raontech
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Camus and Raontech is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Camus Engineering Construction and Raontech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Raontech 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 Raontech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Raontech has no effect on the direction of Camus Engineering i.e., Camus Engineering and Raontech go up and down completely randomly.
Pair Corralation between Camus Engineering and Raontech
Assuming the 90 days trading horizon Camus Engineering Construction is expected to generate 0.59 times more return on investment than Raontech. However, Camus Engineering Construction is 1.71 times less risky than Raontech. It trades about -0.16 of its potential returns per unit of risk. Raontech is currently generating about -0.17 per unit of risk. If you would invest 133,000 in Camus Engineering Construction on December 27, 2024 and sell it today you would lose (15,900) from holding Camus Engineering Construction or give up 11.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Camus Engineering Construction vs. Raontech
Performance |
| Timeline |
| Camus Engineering |
| Raontech |
Camus Engineering and Raontech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Camus Engineering and Raontech
The main advantage of trading using opposite Camus Engineering and Raontech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Camus Engineering position performs unexpectedly, Raontech 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 Raontech will offset losses from the drop in Raontech's long position.| Camus Engineering vs. DoubleU Games Co | Camus Engineering vs. Homecast CoLtd | Camus Engineering vs. ITM Semiconductor Co | Camus Engineering vs. Miwon Chemicals Co |
| Raontech vs. SV Investment | Raontech vs. Aju IB Investment | Raontech vs. NH Investment Securities | Raontech vs. Stic Investments |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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