Correlation Between ABOV Semiconductor and Camus Engineering
Can any of the company-specific risk be diversified away by investing in both ABOV Semiconductor 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 ABOV Semiconductor and Camus Engineering into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ABOV Semiconductor Co and Camus Engineering Construction, you can compare the effects of market volatilities on ABOV Semiconductor 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 ABOV Semiconductor with a short position of Camus Engineering. Check out your portfolio center. Please also check ongoing floating volatility patterns of ABOV Semiconductor and Camus Engineering.
Diversification Opportunities for ABOV Semiconductor and Camus Engineering
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between ABOV and Camus is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding ABOV Semiconductor Co and Camus Engineering Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Camus Engineering and ABOV Semiconductor 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 ABOV Semiconductor Co 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 ABOV Semiconductor i.e., ABOV Semiconductor and Camus Engineering go up and down completely randomly.
Pair Corralation between ABOV Semiconductor and Camus Engineering
Assuming the 90 days trading horizon ABOV Semiconductor Co is expected to under-perform the Camus Engineering. In addition to that, ABOV Semiconductor is 1.5 times more volatile than Camus Engineering Construction. It trades about -0.36 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 Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
ABOV Semiconductor Co vs. Camus Engineering Construction
Performance |
| Timeline |
| ABOV Semiconductor |
| Camus Engineering |
ABOV Semiconductor and Camus Engineering Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ABOV Semiconductor and Camus Engineering
The main advantage of trading using opposite ABOV Semiconductor and Camus Engineering positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ABOV Semiconductor 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.| ABOV Semiconductor vs. Dongsin Engineering Construction | ABOV Semiconductor vs. Doosan Fuel Cell | ABOV Semiconductor vs. Daishin Balance 1 | ABOV Semiconductor vs. Total Soft Bank |
| 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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