Correlation Between Camellia Metal and Chain Chon
Can any of the company-specific risk be diversified away by investing in both Camellia Metal and Chain Chon 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 Chain Chon 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 Chain Chon Industrial, you can compare the effects of market volatilities on Camellia Metal and Chain Chon 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 Chain Chon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Camellia Metal and Chain Chon.
Diversification Opportunities for Camellia Metal and Chain Chon
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Camellia and Chain is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Camellia Metal Co and Chain Chon Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chain Chon 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 Chain Chon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chain Chon Industrial has no effect on the direction of Camellia Metal i.e., Camellia Metal and Chain Chon go up and down completely randomly.
Pair Corralation between Camellia Metal and Chain Chon
Assuming the 90 days trading horizon Camellia Metal is expected to generate 4.98 times less return on investment than Chain Chon. But when comparing it to its historical volatility, Camellia Metal Co is 2.3 times less risky than Chain Chon. It trades about 0.11 of its potential returns per unit of risk. Chain Chon Industrial is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 1,455 in Chain Chon Industrial on November 28, 2024 and sell it today you would earn a total of 160.00 from holding Chain Chon Industrial or generate 11.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 94.44% |
| Values | Daily Returns |
Camellia Metal Co vs. Chain Chon Industrial
Performance |
| Timeline |
| Camellia Metal |
| Chain Chon Industrial |
Camellia Metal and Chain Chon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Camellia Metal and Chain Chon
The main advantage of trading using opposite Camellia Metal and Chain Chon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Camellia Metal position performs unexpectedly, Chain Chon 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 Chain Chon will offset losses from the drop in Chain Chon's long position.| Camellia Metal vs. China Metal Products | Camellia Metal vs. Hwa Fong Rubber | Camellia Metal vs. Farglory FTZ Investment | Camellia Metal vs. Kenda Rubber Industrial |
| Chain Chon vs. Jetwell Computer Co | Chain Chon vs. I Jang Industrial | Chain Chon vs. Syscom Computer Engineering | Chain Chon vs. Kworld Computer 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 CEOs Directory module to screen CEOs from public companies around the world.
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