Correlation Between Camellia Metal and Hunya Foods
Can any of the company-specific risk be diversified away by investing in both Camellia Metal and Hunya Foods 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 Camellia Metal and Hunya Foods into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Camellia Metal Co and Hunya Foods Co, you can compare the effects of market volatilities on Camellia Metal and Hunya Foods 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 Camellia Metal with a short position of Hunya Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Camellia Metal and Hunya Foods.
Diversification Opportunities for Camellia Metal and Hunya Foods
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Camellia and Hunya is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Camellia Metal Co and Hunya Foods Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hunya Foods and Camellia Metal 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 Camellia Metal Co are associated (or correlated) with Hunya Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hunya Foods has no effect on the direction of Camellia Metal i.e., Camellia Metal and Hunya Foods go up and down completely randomly.
Pair Corralation between Camellia Metal and Hunya Foods
Assuming the 90 days trading horizon Camellia Metal Co is expected to under-perform the Hunya Foods. In addition to that, Camellia Metal is 1.15 times more volatile than Hunya Foods Co. It trades about -0.02 of its total potential returns per unit of risk. Hunya Foods Co is currently generating about 0.0 per unit of volatility. If you would invest 2,355 in Hunya Foods Co on September 2, 2024 and sell it today you would lose (35.00) from holding Hunya Foods Co or give up 1.49% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Camellia Metal Co vs. Hunya Foods Co
Performance |
| Timeline |
| Camellia Metal |
| Hunya Foods |
Camellia Metal and Hunya Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Camellia Metal and Hunya Foods
The main advantage of trading using opposite Camellia Metal and Hunya Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Camellia Metal position performs unexpectedly, Hunya Foods 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 Hunya Foods will offset losses from the drop in Hunya Foods' long position.| Camellia Metal vs. Yang Ming Marine | Camellia Metal vs. Wan Hai Lines | Camellia Metal vs. Hsin Kuang Steel | Camellia Metal vs. Evergreen Marine Corp |
| Hunya Foods vs. AGV Products Corp | Hunya Foods vs. Taisun Enterprise Co | Hunya Foods vs. De Licacy Industrial | Hunya Foods vs. Wisher Industrial Co |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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