Correlation Between EV Advanced and Camus Engineering
Can any of the company-specific risk be diversified away by investing in both EV Advanced 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 EV Advanced and Camus Engineering into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EV Advanced Material and Camus Engineering Construction, you can compare the effects of market volatilities on EV Advanced 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 EV Advanced with a short position of Camus Engineering. Check out your portfolio center. Please also check ongoing floating volatility patterns of EV Advanced and Camus Engineering.
Diversification Opportunities for EV Advanced and Camus Engineering
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between 131400 and Camus is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding EV Advanced Material and Camus Engineering Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Camus Engineering and EV Advanced 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 EV Advanced Material 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 EV Advanced i.e., EV Advanced and Camus Engineering go up and down completely randomly.
Pair Corralation between EV Advanced and Camus Engineering
Assuming the 90 days trading horizon EV Advanced is expected to generate 33.82 times less return on investment than Camus Engineering. But when comparing it to its historical volatility, EV Advanced Material is 3.34 times less risky than Camus Engineering. It trades about 0.02 of its potential returns per unit of risk. Camus Engineering Construction is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 135,000 in Camus Engineering Construction on October 12, 2024 and sell it today you would earn a total of 36,300 from holding Camus Engineering Construction or generate 26.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
EV Advanced Material vs. Camus Engineering Construction
Performance |
| Timeline |
| EV Advanced Material |
| Camus Engineering |
EV Advanced and Camus Engineering Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EV Advanced and Camus Engineering
The main advantage of trading using opposite EV Advanced and Camus Engineering positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EV Advanced 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.| EV Advanced vs. Shinhan Inverse Silver | EV Advanced vs. A Tech Solution Co | EV Advanced vs. RFTech Co | EV Advanced vs. SEOWONINTECHCoLtd |
| Camus Engineering vs. EV Advanced Material | Camus Engineering vs. Top Material Co | Camus Engineering vs. Daejoo Electronic Materials | Camus Engineering vs. Ecoplastic |
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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