Correlation Between Investment and Camimex Group
Can any of the company-specific risk be diversified away by investing in both Investment and Camimex Group 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 Investment and Camimex Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Investment and Industrial and Camimex Group JSC, you can compare the effects of market volatilities on Investment and Camimex Group 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 Investment with a short position of Camimex Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Investment and Camimex Group.
Diversification Opportunities for Investment and Camimex Group
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Investment and Camimex is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Investment and Industrial and Camimex Group JSC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Camimex Group JSC and Investment 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 Investment and Industrial are associated (or correlated) with Camimex Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Camimex Group JSC has no effect on the direction of Investment i.e., Investment and Camimex Group go up and down completely randomly.
Pair Corralation between Investment and Camimex Group
Assuming the 90 days trading horizon Investment and Industrial is expected to under-perform the Camimex Group. In addition to that, Investment is 1.19 times more volatile than Camimex Group JSC. It trades about -0.04 of its total potential returns per unit of risk. Camimex Group JSC is currently generating about -0.02 per unit of volatility. If you would invest 816,000 in Camimex Group JSC on September 12, 2024 and sell it today you would lose (16,000) from holding Camimex Group JSC or give up 1.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Investment and Industrial vs. Camimex Group JSC
Performance |
| Timeline |
| Investment and Industrial |
| Camimex Group JSC |
Investment and Camimex Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Investment and Camimex Group
The main advantage of trading using opposite Investment and Camimex Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Investment position performs unexpectedly, Camimex Group 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 Camimex Group will offset losses from the drop in Camimex Group's long position.| Investment vs. AgriBank Securities JSC | Investment vs. PostTelecommunication Equipment | Investment vs. Tri Viet Management | Investment vs. Post and Telecommunications |
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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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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