Correlation Between SCI Information and Camus Engineering
Can any of the company-specific risk be diversified away by investing in both SCI Information 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 SCI Information and Camus Engineering into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SCI Information Service and Camus Engineering Construction, you can compare the effects of market volatilities on SCI Information 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 SCI Information with a short position of Camus Engineering. Check out your portfolio center. Please also check ongoing floating volatility patterns of SCI Information and Camus Engineering.
Diversification Opportunities for SCI Information and Camus Engineering
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between SCI and Camus is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding SCI Information Service and Camus Engineering Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Camus Engineering and SCI Information 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 SCI Information Service 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 SCI Information i.e., SCI Information and Camus Engineering go up and down completely randomly.
Pair Corralation between SCI Information and Camus Engineering
Assuming the 90 days trading horizon SCI Information Service is expected to under-perform the Camus Engineering. In addition to that, SCI Information is 1.16 times more volatile than Camus Engineering Construction. It trades about -0.21 of its total potential returns per unit of risk. Camus Engineering Construction is currently generating about -0.05 per unit of volatility. If you would invest 130,700 in Camus Engineering Construction on September 2, 2024 and sell it today you would lose (2,900) from holding Camus Engineering Construction or give up 2.22% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
SCI Information Service vs. Camus Engineering Construction
Performance |
| Timeline |
| SCI Information Service |
| Camus Engineering |
SCI Information and Camus Engineering Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SCI Information and Camus Engineering
The main advantage of trading using opposite SCI Information and Camus Engineering positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SCI Information 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.| SCI Information vs. Samsung Electronics Co | SCI Information vs. Samsung Electronics Co | SCI Information vs. KB Financial Group | SCI Information vs. Shinhan Financial Group |
| Camus Engineering vs. Samsung CT Corp | Camus Engineering vs. Hyundai Engineering Construction | Camus Engineering vs. Kolon Globalco |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |