Correlation Between Camden National and Global X
Can any of the company-specific risk be diversified away by investing in both Camden National and Global X 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 Camden National and Global X into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Camden National and Global X DAX, you can compare the effects of market volatilities on Camden National and Global X 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 Camden National with a short position of Global X. Check out your portfolio center. Please also check ongoing floating volatility patterns of Camden National and Global X.
Diversification Opportunities for Camden National and Global X
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Camden and Global is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Camden National and Global X DAX in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global X DAX and Camden National 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 Camden National are associated (or correlated) with Global X. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global X DAX has no effect on the direction of Camden National i.e., Camden National and Global X go up and down completely randomly.
Pair Corralation between Camden National and Global X
Considering the 90-day investment horizon Camden National is expected to generate 3.3 times more return on investment than Global X. However, Camden National is 3.3 times more volatile than Global X DAX. It trades about 0.16 of its potential returns per unit of risk. Global X DAX is currently generating about -0.13 per unit of risk. If you would invest 4,220 in Camden National on August 30, 2024 and sell it today you would earn a total of 538.00 from holding Camden National or generate 12.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Camden National vs. Global X DAX
Performance |
| Timeline |
| Camden National |
| Global X DAX |
Camden National and Global X Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Camden National and Global X
The main advantage of trading using opposite Camden National and Global X positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Camden National position performs unexpectedly, Global X 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 Global X will offset losses from the drop in Global X's long position.| Camden National vs. First United | Camden National vs. First Community | Camden National vs. Greene County Bancorp | Camden National vs. Community West Bancshares |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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