Correlation Between DB Financial and Camus Engineering
Can any of the company-specific risk be diversified away by investing in both DB Financial and Camus Engineering 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 DB Financial and Camus Engineering into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DB Financial Investment and Camus Engineering Construction, you can compare the effects of market volatilities on DB Financial and Camus Engineering 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 DB Financial with a short position of Camus Engineering. Check out your portfolio center. Please also check ongoing floating volatility patterns of DB Financial and Camus Engineering.
Diversification Opportunities for DB Financial and Camus Engineering
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between 016610 and Camus is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding DB Financial Investment and Camus Engineering Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Camus Engineering and DB Financial 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 DB Financial Investment are associated (or correlated) with Camus Engineering. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Camus Engineering has no effect on the direction of DB Financial i.e., DB Financial and Camus Engineering go up and down completely randomly.
Pair Corralation between DB Financial and Camus Engineering
Assuming the 90 days trading horizon DB Financial Investment is expected to generate 0.07 times more return on investment than Camus Engineering. However, DB Financial Investment is 14.13 times less risky than Camus Engineering. It trades about 0.31 of its potential returns per unit of risk. Camus Engineering Construction is currently generating about 0.02 per unit of risk. If you would invest 525,000 in DB Financial Investment on November 8, 2024 and sell it today you would earn a total of 17,000 from holding DB Financial Investment or generate 3.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
DB Financial Investment vs. Camus Engineering Construction
Performance |
| Timeline |
| DB Financial Investment |
| Camus Engineering |
DB Financial and Camus Engineering Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DB Financial and Camus Engineering
The main advantage of trading using opposite DB Financial and Camus Engineering positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DB Financial position performs unexpectedly, Camus Engineering 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 Camus Engineering will offset losses from the drop in Camus Engineering's long position.| DB Financial vs. SK Chemicals Co | DB Financial vs. JC Chemical Co | DB Financial vs. Bosung Power Technology | DB Financial vs. Kg Chemical |
| Camus Engineering vs. Hyundai Engineering Construction | Camus Engineering vs. KEPCO Engineering Construction |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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