Correlation Between Cameo Communications and K Way
Can any of the company-specific risk be diversified away by investing in both Cameo Communications and K Way 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 Cameo Communications and K Way into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cameo Communications and K Way Information, you can compare the effects of market volatilities on Cameo Communications and K Way 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 Cameo Communications with a short position of K Way. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cameo Communications and K Way.
Diversification Opportunities for Cameo Communications and K Way
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Cameo and 5201 is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Cameo Communications and K Way Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on K Way Information and Cameo Communications 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 Cameo Communications are associated (or correlated) with K Way. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of K Way Information has no effect on the direction of Cameo Communications i.e., Cameo Communications and K Way go up and down completely randomly.
Pair Corralation between Cameo Communications and K Way
Assuming the 90 days trading horizon Cameo Communications is expected to generate 1.06 times more return on investment than K Way. However, Cameo Communications is 1.06 times more volatile than K Way Information. It trades about 0.02 of its potential returns per unit of risk. K Way Information is currently generating about 0.01 per unit of risk. If you would invest 1,010 in Cameo Communications on September 3, 2024 and sell it today you would earn a total of 140.00 from holding Cameo Communications or generate 13.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cameo Communications vs. K Way Information
Performance |
| Timeline |
| Cameo Communications |
| K Way Information |
Cameo Communications and K Way Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cameo Communications and K Way
The main advantage of trading using opposite Cameo Communications and K Way positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cameo Communications position performs unexpectedly, K Way 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 K Way will offset losses from the drop in K Way's long position.| Cameo Communications vs. Taiwan Semiconductor Manufacturing | Cameo Communications vs. Yang Ming Marine | Cameo Communications vs. ASE Industrial Holding | Cameo Communications vs. AU Optronics |
| K Way vs. Mitake Information | K Way vs. YuantaP shares Taiwan Mid Cap | K Way vs. YuantaP shares Taiwan Electronics | K Way vs. YuantaP shares Taiwan Top |
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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