Correlation Between Oceanic Beverages and Camellia Metal
Can any of the company-specific risk be diversified away by investing in both Oceanic Beverages and Camellia Metal 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 Oceanic Beverages and Camellia Metal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oceanic Beverages Co and Camellia Metal Co, you can compare the effects of market volatilities on Oceanic Beverages and Camellia Metal 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 Oceanic Beverages with a short position of Camellia Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oceanic Beverages and Camellia Metal.
Diversification Opportunities for Oceanic Beverages and Camellia Metal
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Oceanic and Camellia is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Oceanic Beverages Co and Camellia Metal Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Camellia Metal and Oceanic Beverages 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 Oceanic Beverages Co are associated (or correlated) with Camellia Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Camellia Metal has no effect on the direction of Oceanic Beverages i.e., Oceanic Beverages and Camellia Metal go up and down completely randomly.
Pair Corralation between Oceanic Beverages and Camellia Metal
Assuming the 90 days trading horizon Oceanic Beverages Co is expected to generate 0.72 times more return on investment than Camellia Metal. However, Oceanic Beverages Co is 1.4 times less risky than Camellia Metal. It trades about -0.07 of its potential returns per unit of risk. Camellia Metal Co is currently generating about -0.1 per unit of risk. If you would invest 1,230 in Oceanic Beverages Co on September 5, 2024 and sell it today you would lose (35.00) from holding Oceanic Beverages Co or give up 2.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oceanic Beverages Co vs. Camellia Metal Co
Performance |
| Timeline |
| Oceanic Beverages |
| Camellia Metal |
Oceanic Beverages and Camellia Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oceanic Beverages and Camellia Metal
The main advantage of trading using opposite Oceanic Beverages and Camellia Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oceanic Beverages position performs unexpectedly, Camellia Metal 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 Camellia Metal will offset losses from the drop in Camellia Metal's long position.| Oceanic Beverages vs. Hey Song Corp | Oceanic Beverages vs. AGV Products Corp | Oceanic Beverages vs. Fwusow Industry Co | Oceanic Beverages vs. Taisun Enterprise Co |
| Camellia Metal vs. Fu Burg Industrial | Camellia Metal vs. Song Ho Industrial | Camellia Metal vs. Chung Hwa Food | Camellia Metal vs. Sunspring Metal Corp |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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