Correlation Between Jin Air and Camus Engineering
Can any of the company-specific risk be diversified away by investing in both Jin Air 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 Jin Air and Camus Engineering into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jin Air Co and Camus Engineering Construction, you can compare the effects of market volatilities on Jin Air 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 Jin Air with a short position of Camus Engineering. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jin Air and Camus Engineering.
Diversification Opportunities for Jin Air and Camus Engineering
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jin and Camus is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Jin Air Co and Camus Engineering Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Camus Engineering and Jin Air 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 Jin Air Co 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 Jin Air i.e., Jin Air and Camus Engineering go up and down completely randomly.
Pair Corralation between Jin Air and Camus Engineering
Assuming the 90 days trading horizon Jin Air Co is expected to generate 0.71 times more return on investment than Camus Engineering. However, Jin Air Co is 1.42 times less risky than Camus Engineering. It trades about -0.07 of its potential returns per unit of risk. Camus Engineering Construction is currently generating about -0.12 per unit of risk. If you would invest 1,002,000 in Jin Air Co on December 1, 2024 and sell it today you would lose (22,000) from holding Jin Air Co or give up 2.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jin Air Co vs. Camus Engineering Construction
Performance |
| Timeline |
| Jin Air |
| Camus Engineering |
Jin Air and Camus Engineering Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jin Air and Camus Engineering
The main advantage of trading using opposite Jin Air and Camus Engineering positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jin Air 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.| Jin Air vs. Industrial Bank | Jin Air vs. Samyung Trading Co | Jin Air vs. E Investment Development | Jin Air vs. Kbi Metal Co |
| Camus Engineering vs. Samsung CT Corp | Camus Engineering vs. Hyundai Engineering Construction | Camus Engineering vs. KEPCO Engineering Construction | Camus Engineering vs. Kolon Globalco |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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