Correlation Between Camellia Metal and Emerging Display
Can any of the company-specific risk be diversified away by investing in both Camellia Metal and Emerging Display 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 Emerging Display 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 Emerging Display Technologies, you can compare the effects of market volatilities on Camellia Metal and Emerging Display 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 Emerging Display. Check out your portfolio center. Please also check ongoing floating volatility patterns of Camellia Metal and Emerging Display.
Diversification Opportunities for Camellia Metal and Emerging Display
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Camellia and Emerging is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Camellia Metal Co and Emerging Display Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Emerging Display Tec 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 Emerging Display. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Emerging Display Tec has no effect on the direction of Camellia Metal i.e., Camellia Metal and Emerging Display go up and down completely randomly.
Pair Corralation between Camellia Metal and Emerging Display
Assuming the 90 days trading horizon Camellia Metal Co is expected to under-perform the Emerging Display. In addition to that, Camellia Metal is 1.9 times more volatile than Emerging Display Technologies. It trades about -0.21 of its total potential returns per unit of risk. Emerging Display Technologies is currently generating about 0.18 per unit of volatility. If you would invest 2,575 in Emerging Display Technologies on August 30, 2024 and sell it today you would earn a total of 125.00 from holding Emerging Display Technologies or generate 4.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Camellia Metal Co vs. Emerging Display Technologies
Performance |
| Timeline |
| Camellia Metal |
| Emerging Display Tec |
Camellia Metal and Emerging Display Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Camellia Metal and Emerging Display
The main advantage of trading using opposite Camellia Metal and Emerging Display positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Camellia Metal position performs unexpectedly, Emerging Display 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 Emerging Display will offset losses from the drop in Emerging Display's long position.| Camellia Metal vs. Catcher Technology Co | Camellia Metal vs. Solar Applied Materials | Camellia Metal vs. Shin Zu Shing | Camellia Metal vs. China Metal Products |
| Emerging Display vs. First Copper Technology | Emerging Display vs. Sunspring Metal Corp | Emerging Display vs. Camellia Metal Co | Emerging Display vs. Amulaire Thermal Technology |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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