Correlation Between INNOX Advanced and Camus Engineering
Can any of the company-specific risk be diversified away by investing in both INNOX Advanced and Camus Engineering 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 INNOX Advanced and Camus Engineering into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between INNOX Advanced Materials and Camus Engineering Construction, you can compare the effects of market volatilities on INNOX Advanced and Camus Engineering 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 INNOX Advanced with a short position of Camus Engineering. Check out your portfolio center. Please also check ongoing floating volatility patterns of INNOX Advanced and Camus Engineering.
Diversification Opportunities for INNOX Advanced and Camus Engineering
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between INNOX and Camus is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding INNOX Advanced Materials and Camus Engineering Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Camus Engineering and INNOX Advanced 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 INNOX Advanced Materials are associated (or correlated) with Camus Engineering. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Camus Engineering has no effect on the direction of INNOX Advanced i.e., INNOX Advanced and Camus Engineering go up and down completely randomly.
Pair Corralation between INNOX Advanced and Camus Engineering
Assuming the 90 days trading horizon INNOX Advanced Materials is expected to generate 1.91 times more return on investment than Camus Engineering. However, INNOX Advanced is 1.91 times more volatile than Camus Engineering Construction. It trades about 0.1 of its potential returns per unit of risk. Camus Engineering Construction is currently generating about -0.03 per unit of risk. If you would invest 2,710,000 in INNOX Advanced Materials on November 27, 2024 and sell it today you would earn a total of 155,000 from holding INNOX Advanced Materials or generate 5.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
INNOX Advanced Materials vs. Camus Engineering Construction
Performance |
| Timeline |
| INNOX Advanced Materials |
| Camus Engineering |
INNOX Advanced and Camus Engineering Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INNOX Advanced and Camus Engineering
The main advantage of trading using opposite INNOX Advanced and Camus Engineering positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INNOX Advanced position performs unexpectedly, Camus Engineering 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 Camus Engineering will offset losses from the drop in Camus Engineering's long position.| INNOX Advanced vs. Neungyule Education | INNOX Advanced vs. Korea Information Engineering | INNOX Advanced vs. Hanwha InvestmentSecurities Co | INNOX Advanced vs. DB Financial Investment |
| Camus Engineering vs. Amogreentech Co | Camus Engineering vs. Shinil Electronics Co | Camus Engineering vs. Orbitech Co | Camus Engineering vs. Vitzro Tech 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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