Correlation Between Camellia Metal and HOYA Resort
Can any of the company-specific risk be diversified away by investing in both Camellia Metal and HOYA Resort 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 HOYA Resort 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 HOYA Resort Hotel, you can compare the effects of market volatilities on Camellia Metal and HOYA Resort 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 HOYA Resort. Check out your portfolio center. Please also check ongoing floating volatility patterns of Camellia Metal and HOYA Resort.
Diversification Opportunities for Camellia Metal and HOYA Resort
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Camellia and HOYA is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Camellia Metal Co and HOYA Resort Hotel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HOYA Resort Hotel 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 HOYA Resort. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HOYA Resort Hotel has no effect on the direction of Camellia Metal i.e., Camellia Metal and HOYA Resort go up and down completely randomly.
Pair Corralation between Camellia Metal and HOYA Resort
Assuming the 90 days trading horizon Camellia Metal Co is expected to generate 0.51 times more return on investment than HOYA Resort. However, Camellia Metal Co is 1.97 times less risky than HOYA Resort. It trades about -0.02 of its potential returns per unit of risk. HOYA Resort Hotel is currently generating about -0.06 per unit of risk. If you would invest 1,690 in Camellia Metal Co on September 2, 2024 and sell it today you would lose (205.00) from holding Camellia Metal Co or give up 12.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Camellia Metal Co vs. HOYA Resort Hotel
Performance |
| Timeline |
| Camellia Metal |
| HOYA Resort Hotel |
Camellia Metal and HOYA Resort Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Camellia Metal and HOYA Resort
The main advantage of trading using opposite Camellia Metal and HOYA Resort positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Camellia Metal position performs unexpectedly, HOYA Resort 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 HOYA Resort will offset losses from the drop in HOYA Resort's 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 |
| HOYA Resort vs. Formosa International Hotels | HOYA Resort vs. Ambassador Hotel | HOYA Resort vs. FDC International Hotels | HOYA Resort vs. First Hotel 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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