Correlation Between Dongbang Ship and Camus Engineering
Can any of the company-specific risk be diversified away by investing in both Dongbang Ship 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 Dongbang Ship and Camus Engineering into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dongbang Ship Machinery and Camus Engineering Construction, you can compare the effects of market volatilities on Dongbang Ship 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 Dongbang Ship with a short position of Camus Engineering. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongbang Ship and Camus Engineering.
Diversification Opportunities for Dongbang Ship and Camus Engineering
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Dongbang and Camus is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Dongbang Ship Machinery and Camus Engineering Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Camus Engineering and Dongbang Ship 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 Dongbang Ship Machinery 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 Dongbang Ship i.e., Dongbang Ship and Camus Engineering go up and down completely randomly.
Pair Corralation between Dongbang Ship and Camus Engineering
Assuming the 90 days trading horizon Dongbang Ship Machinery is expected to under-perform the Camus Engineering. In addition to that, Dongbang Ship is 1.69 times more volatile than Camus Engineering Construction. It trades about -0.03 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 130,800 in Camus Engineering Construction on September 1, 2024 and sell it today you would lose (3,000) from holding Camus Engineering Construction or give up 2.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dongbang Ship Machinery vs. Camus Engineering Construction
Performance |
| Timeline |
| Dongbang Ship Machinery |
| Camus Engineering |
Dongbang Ship and Camus Engineering Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongbang Ship and Camus Engineering
The main advantage of trading using opposite Dongbang Ship and Camus Engineering positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongbang Ship 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.| Dongbang Ship vs. Korea New Network | Dongbang Ship vs. ICD Co | Dongbang Ship vs. DYPNF CoLtd | Dongbang Ship vs. Busan Industrial Co |
| 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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