Correlation Between Camus Engineering and Nam Hwa
Can any of the company-specific risk be diversified away by investing in both Camus Engineering and Nam Hwa 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 Camus Engineering and Nam Hwa into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Camus Engineering Construction and Nam Hwa Construction, you can compare the effects of market volatilities on Camus Engineering and Nam Hwa 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 Camus Engineering with a short position of Nam Hwa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Camus Engineering and Nam Hwa.
Diversification Opportunities for Camus Engineering and Nam Hwa
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Camus and Nam is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Camus Engineering Construction and Nam Hwa Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nam Hwa Construction and Camus Engineering 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 Camus Engineering Construction are associated (or correlated) with Nam Hwa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nam Hwa Construction has no effect on the direction of Camus Engineering i.e., Camus Engineering and Nam Hwa go up and down completely randomly.
Pair Corralation between Camus Engineering and Nam Hwa
Assuming the 90 days trading horizon Camus Engineering Construction is expected to generate 0.94 times more return on investment than Nam Hwa. However, Camus Engineering Construction is 1.06 times less risky than Nam Hwa. It trades about -0.02 of its potential returns per unit of risk. Nam Hwa Construction is currently generating about -0.06 per unit of risk. If you would invest 163,280 in Camus Engineering Construction on December 5, 2024 and sell it today you would lose (38,980) from holding Camus Engineering Construction or give up 23.87% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 99.79% |
Values | Daily Returns |
Camus Engineering Construction vs. Nam Hwa Construction
Performance |
Timeline |
Camus Engineering |
Nam Hwa Construction |
Camus Engineering and Nam Hwa Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Camus Engineering and Nam Hwa
The main advantage of trading using opposite Camus Engineering and Nam Hwa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Camus Engineering position performs unexpectedly, Nam Hwa 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 Nam Hwa will offset losses from the drop in Nam Hwa's long position.Camus Engineering vs. Ssangyong Information Communication | Camus Engineering vs. Sewoon Medical Co | Camus Engineering vs. Innowireless Co | Camus Engineering vs. Hyundai Industrial Co |
Nam Hwa vs. Digital Imaging Technology | Nam Hwa vs. ADTechnology CoLtd | Nam Hwa vs. SK IE Technology | Nam Hwa vs. Kyeryong Construction Industrial |
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 Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
CEOs Directory Screen CEOs from public companies around the world |