Correlation Between DXGE and Camden National
Can any of the company-specific risk be diversified away by investing in both DXGE and Camden National 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 DXGE and Camden National into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DXGE and Camden National, you can compare the effects of market volatilities on DXGE and Camden National 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 DXGE with a short position of Camden National. Check out your portfolio center. Please also check ongoing floating volatility patterns of DXGE and Camden National.
Diversification Opportunities for DXGE and Camden National
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between DXGE and Camden is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding DXGE and Camden National in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Camden National and DXGE 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 DXGE are associated (or correlated) with Camden National. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Camden National has no effect on the direction of DXGE i.e., DXGE and Camden National go up and down completely randomly.
Pair Corralation between DXGE and Camden National
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 Together |
| Strength | Very Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
DXGE vs. Camden National
Performance |
| Timeline |
| DXGE |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Camden National |
DXGE and Camden National Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DXGE and Camden National
The main advantage of trading using opposite DXGE and Camden National positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DXGE position performs unexpectedly, Camden National 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 Camden National will offset losses from the drop in Camden National's long position.The idea behind DXGE and Camden National pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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