Correlation Between Chernan Metal and Camellia Metal
Can any of the company-specific risk be diversified away by investing in both Chernan Metal and Camellia Metal 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 Chernan Metal and Camellia Metal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chernan Metal Industrial and Camellia Metal Co, you can compare the effects of market volatilities on Chernan Metal and Camellia Metal 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 Chernan Metal with a short position of Camellia Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chernan Metal and Camellia Metal.
Diversification Opportunities for Chernan Metal and Camellia Metal
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Chernan and Camellia is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Chernan Metal Industrial and Camellia Metal Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Camellia Metal and Chernan 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 Chernan Metal Industrial are associated (or correlated) with Camellia Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Camellia Metal has no effect on the direction of Chernan Metal i.e., Chernan Metal and Camellia Metal go up and down completely randomly.
Pair Corralation between Chernan Metal and Camellia Metal
Assuming the 90 days trading horizon Chernan Metal Industrial is expected to generate 1.55 times more return on investment than Camellia Metal. However, Chernan Metal is 1.55 times more volatile than Camellia Metal Co. It trades about 0.03 of its potential returns per unit of risk. Camellia Metal Co is currently generating about -0.02 per unit of risk. If you would invest 3,420 in Chernan Metal Industrial on September 2, 2024 and sell it today you would earn a total of 635.00 from holding Chernan Metal Industrial or generate 18.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chernan Metal Industrial vs. Camellia Metal Co
Performance |
| Timeline |
| Chernan Metal Industrial |
| Camellia Metal |
Chernan Metal and Camellia Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chernan Metal and Camellia Metal
The main advantage of trading using opposite Chernan Metal and Camellia Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chernan Metal position performs unexpectedly, Camellia Metal 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 Camellia Metal will offset losses from the drop in Camellia Metal's long position.| Chernan Metal vs. Yang Ming Marine | Chernan Metal vs. Wan Hai Lines | Chernan Metal vs. Hsin Kuang Steel | Chernan Metal vs. Evergreen Marine Corp |
| Camellia Metal vs. Yang Ming Marine | Camellia Metal vs. Wan Hai Lines | Camellia Metal vs. Hsin Kuang Steel | Camellia Metal vs. Evergreen Marine 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |