Correlation Between Camellia Metal and Pontex Polyblend
Can any of the company-specific risk be diversified away by investing in both Camellia Metal and Pontex Polyblend 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 Pontex Polyblend 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 Pontex Polyblend CoLtd, you can compare the effects of market volatilities on Camellia Metal and Pontex Polyblend 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 Pontex Polyblend. Check out your portfolio center. Please also check ongoing floating volatility patterns of Camellia Metal and Pontex Polyblend.
Diversification Opportunities for Camellia Metal and Pontex Polyblend
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Camellia and Pontex is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Camellia Metal Co and Pontex Polyblend CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pontex Polyblend CoLtd 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 Pontex Polyblend. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pontex Polyblend CoLtd has no effect on the direction of Camellia Metal i.e., Camellia Metal and Pontex Polyblend go up and down completely randomly.
Pair Corralation between Camellia Metal and Pontex Polyblend
Assuming the 90 days trading horizon Camellia Metal Co is expected to under-perform the Pontex Polyblend. But the stock apears to be less risky and, when comparing its historical volatility, Camellia Metal Co is 1.56 times less risky than Pontex Polyblend. The stock trades about -0.06 of its potential returns per unit of risk. The Pontex Polyblend CoLtd is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 2,030 in Pontex Polyblend CoLtd on October 26, 2024 and sell it today you would earn a total of 260.00 from holding Pontex Polyblend CoLtd or generate 12.81% 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. Pontex Polyblend CoLtd
Performance |
| Timeline |
| Camellia Metal |
| Pontex Polyblend CoLtd |
Camellia Metal and Pontex Polyblend Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Camellia Metal and Pontex Polyblend
The main advantage of trading using opposite Camellia Metal and Pontex Polyblend positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Camellia Metal position performs unexpectedly, Pontex Polyblend 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 Pontex Polyblend will offset losses from the drop in Pontex Polyblend's long position.| Camellia Metal vs. Catcher Technology Co | Camellia Metal vs. Solar Applied Materials | Camellia Metal vs. Evergreen Steel Corp | Camellia Metal vs. Shin Zu Shing |
| Pontex Polyblend vs. FarGlory Hotel Co | Pontex Polyblend vs. Thye Ming Industrial | Pontex Polyblend vs. First Hotel Co | Pontex Polyblend vs. Camellia Metal 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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