Correlation Between Tuksu Engineering and Camus Engineering
Can any of the company-specific risk be diversified away by investing in both Tuksu Engineering 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 Tuksu Engineering and Camus Engineering into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tuksu Engineering ConstructionLtd and Camus Engineering Construction, you can compare the effects of market volatilities on Tuksu Engineering 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 Tuksu Engineering with a short position of Camus Engineering. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tuksu Engineering and Camus Engineering.
Diversification Opportunities for Tuksu Engineering and Camus Engineering
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Tuksu and Camus is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Tuksu Engineering Construction and Camus Engineering Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Camus Engineering and Tuksu 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 Tuksu Engineering ConstructionLtd 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 Tuksu Engineering i.e., Tuksu Engineering and Camus Engineering go up and down completely randomly.
Pair Corralation between Tuksu Engineering and Camus Engineering
Assuming the 90 days trading horizon Tuksu Engineering is expected to generate 1.59 times less return on investment than Camus Engineering. But when comparing it to its historical volatility, Tuksu Engineering ConstructionLtd is 4.54 times less risky than Camus Engineering. It trades about 0.12 of its potential returns per unit of risk. Camus Engineering Construction is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 131,400 in Camus Engineering Construction on November 3, 2024 and sell it today you would earn a total of 1,600 from holding Camus Engineering Construction or generate 1.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tuksu Engineering Construction vs. Camus Engineering Construction
Performance |
| Timeline |
| Tuksu Engineering |
| Camus Engineering |
Tuksu Engineering and Camus Engineering Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tuksu Engineering and Camus Engineering
The main advantage of trading using opposite Tuksu Engineering and Camus Engineering positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tuksu Engineering 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.| Tuksu Engineering vs. Dongkuk Structures Construction | Tuksu Engineering vs. KT Submarine Telecom | Tuksu Engineering vs. GS Engineering Construction | Tuksu Engineering vs. ENERGYMACHINERY KOREA CoLtd |
| Camus Engineering vs. Tway Air Co | Camus Engineering vs. Puloon Technology | Camus Engineering vs. Digital Imaging Technology | Camus Engineering vs. InnoTherapy |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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