Correlation Between Korea Aerospace and Camus Engineering
Can any of the company-specific risk be diversified away by investing in both Korea Aerospace 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 Korea Aerospace and Camus Engineering into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Korea Aerospace Industries and Camus Engineering Construction, you can compare the effects of market volatilities on Korea Aerospace 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 Korea Aerospace with a short position of Camus Engineering. Check out your portfolio center. Please also check ongoing floating volatility patterns of Korea Aerospace and Camus Engineering.
Diversification Opportunities for Korea Aerospace and Camus Engineering
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Korea and Camus is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Korea Aerospace Industries and Camus Engineering Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Camus Engineering and Korea Aerospace 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 Korea Aerospace Industries 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 Korea Aerospace i.e., Korea Aerospace and Camus Engineering go up and down completely randomly.
Pair Corralation between Korea Aerospace and Camus Engineering
Assuming the 90 days trading horizon Korea Aerospace Industries is expected to under-perform the Camus Engineering. But the stock apears to be less risky and, when comparing its historical volatility, Korea Aerospace Industries is 5.67 times less risky than Camus Engineering. The stock trades about -0.19 of its potential returns per unit of risk. The Camus Engineering Construction is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 130,900 in Camus Engineering Construction on November 4, 2024 and sell it today you would earn a total of 2,100 from holding Camus Engineering Construction or generate 1.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Korea Aerospace Industries vs. Camus Engineering Construction
Performance |
| Timeline |
| Korea Aerospace Indu |
| Camus Engineering |
Korea Aerospace and Camus Engineering Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Korea Aerospace and Camus Engineering
The main advantage of trading using opposite Korea Aerospace and Camus Engineering positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Korea Aerospace 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.| Korea Aerospace vs. Hanmi Semiconductor Co | Korea Aerospace vs. Dongil Metal Co | Korea Aerospace vs. Daejung Chemicals Metals | Korea Aerospace vs. Organic Special Pet |
| 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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