Correlation Between Camellia Metal and Allied Industrial
Can any of the company-specific risk be diversified away by investing in both Camellia Metal and Allied Industrial 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 Allied Industrial 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 Allied Industrial, you can compare the effects of market volatilities on Camellia Metal and Allied Industrial 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 Allied Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Camellia Metal and Allied Industrial.
Diversification Opportunities for Camellia Metal and Allied Industrial
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Camellia and Allied is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Camellia Metal Co and Allied Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allied Industrial 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 Allied Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allied Industrial has no effect on the direction of Camellia Metal i.e., Camellia Metal and Allied Industrial go up and down completely randomly.
Pair Corralation between Camellia Metal and Allied Industrial
Assuming the 90 days trading horizon Camellia Metal Co is expected to under-perform the Allied Industrial. In addition to that, Camellia Metal is 1.06 times more volatile than Allied Industrial. It trades about -0.01 of its total potential returns per unit of risk. Allied Industrial is currently generating about 0.0 per unit of volatility. If you would invest 1,310 in Allied Industrial on September 3, 2024 and sell it today you would lose (40.00) from holding Allied Industrial or give up 3.05% 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. Allied Industrial
Performance |
| Timeline |
| Camellia Metal |
| Allied Industrial |
Camellia Metal and Allied Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Camellia Metal and Allied Industrial
The main advantage of trading using opposite Camellia Metal and Allied Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Camellia Metal position performs unexpectedly, Allied Industrial 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 Allied Industrial will offset losses from the drop in Allied Industrial's long position.| Camellia Metal vs. Catcher Technology Co | Camellia Metal vs. Evergreen Steel Corp | Camellia Metal vs. China Metal Products | Camellia Metal vs. Chernan Metal Industrial |
| Allied Industrial vs. Delta Electronics | Allied Industrial vs. China Steel Chemical | Allied Industrial vs. WiseChip Semiconductor | Allied Industrial vs. Novatek Microelectronics 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |