Correlation Between Haitai Confectionery and Camus Engineering
Can any of the company-specific risk be diversified away by investing in both Haitai Confectionery 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 Haitai Confectionery and Camus Engineering into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Haitai Confectionery Foods and Camus Engineering Construction, you can compare the effects of market volatilities on Haitai Confectionery 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 Haitai Confectionery with a short position of Camus Engineering. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haitai Confectionery and Camus Engineering.
Diversification Opportunities for Haitai Confectionery and Camus Engineering
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Haitai and Camus is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Haitai Confectionery Foods and Camus Engineering Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Camus Engineering and Haitai Confectionery 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 Haitai Confectionery Foods 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 Haitai Confectionery i.e., Haitai Confectionery and Camus Engineering go up and down completely randomly.
Pair Corralation between Haitai Confectionery and Camus Engineering
Assuming the 90 days trading horizon Haitai Confectionery Foods is expected to under-perform the Camus Engineering. But the stock apears to be less risky and, when comparing its historical volatility, Haitai Confectionery Foods is 6.23 times less risky than Camus Engineering. The stock trades about -0.23 of its potential returns per unit of risk. The Camus Engineering Construction is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 127,700 in Camus Engineering Construction on November 8, 2024 and sell it today you would lose (3,300) from holding Camus Engineering Construction or give up 2.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Haitai Confectionery Foods vs. Camus Engineering Construction
Performance |
| Timeline |
| Haitai Confectionery |
| Camus Engineering |
Haitai Confectionery and Camus Engineering Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Haitai Confectionery and Camus Engineering
The main advantage of trading using opposite Haitai Confectionery and Camus Engineering positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haitai Confectionery 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.| Haitai Confectionery vs. Global Standard Technology | Haitai Confectionery vs. Settlebank | Haitai Confectionery vs. Dgb Financial | Haitai Confectionery vs. Dongil Technology |
| 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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