Correlation Between Camden National and SPDR EURO
Can any of the company-specific risk be diversified away by investing in both Camden National and SPDR EURO 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 SPDR EURO into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Camden National and SPDR EURO STOXX, you can compare the effects of market volatilities on Camden National and SPDR EURO 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 SPDR EURO. Check out your portfolio center. Please also check ongoing floating volatility patterns of Camden National and SPDR EURO.
Diversification Opportunities for Camden National and SPDR EURO
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Camden and SPDR is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Camden National and SPDR EURO STOXX in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPDR EURO STOXX 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 SPDR EURO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPDR EURO STOXX has no effect on the direction of Camden National i.e., Camden National and SPDR EURO go up and down completely randomly.
Pair Corralation between Camden National and SPDR EURO
Considering the 90-day investment horizon Camden National is expected to generate 3.58 times more return on investment than SPDR EURO. However, Camden National is 3.58 times more volatile than SPDR EURO STOXX. It trades about 0.23 of its potential returns per unit of risk. SPDR EURO STOXX is currently generating about -0.27 per unit of risk. If you would invest 4,018 in Camden National on August 26, 2024 and sell it today you would earn a total of 778.00 from holding Camden National or generate 19.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Camden National vs. SPDR EURO STOXX
Performance |
| Timeline |
| Camden National |
| SPDR EURO STOXX |
Camden National and SPDR EURO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Camden National and SPDR EURO
The main advantage of trading using opposite Camden National and SPDR EURO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Camden National position performs unexpectedly, SPDR EURO 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 SPDR EURO will offset losses from the drop in SPDR EURO'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 |
| SPDR EURO vs. WisdomTree Europe Hedged | SPDR EURO vs. WisdomTree International Hedged | SPDR EURO vs. WisdomTree Emerging Markets | SPDR EURO vs. WisdomTree Dynamic Currency |
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.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |