Correlation Between Camellia Metal and Data International

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Camellia Metal and Data International 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 Camellia Metal and Data International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Camellia Metal Co and Data International Co, you can compare the effects of market volatilities on Camellia Metal and Data International 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 Camellia Metal with a short position of Data International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Camellia Metal and Data International.

Diversification Opportunities for Camellia Metal and Data International

0.79
  Correlation Coefficient

Poor diversification

The 3 months correlation between Camellia and Data is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Camellia Metal Co and Data International Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Data International and Camellia Metal 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 Camellia Metal Co are associated (or correlated) with Data International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Data International has no effect on the direction of Camellia Metal i.e., Camellia Metal and Data International go up and down completely randomly.

Pair Corralation between Camellia Metal and Data International

Assuming the 90 days trading horizon Camellia Metal Co is expected to generate 0.42 times more return on investment than Data International. However, Camellia Metal Co is 2.39 times less risky than Data International. It trades about -0.08 of its potential returns per unit of risk. Data International Co is currently generating about -0.44 per unit of risk. If you would invest  1,515  in Camellia Metal Co on October 11, 2024 and sell it today you would lose (35.00) from holding Camellia Metal Co or give up 2.31% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Camellia Metal Co  vs.  Data International Co

 Performance 
       Timeline  
Camellia Metal 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Camellia Metal Co has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Camellia Metal is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.
Data International 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Data International Co has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of abnormal performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in February 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Camellia Metal and Data International Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Camellia Metal and Data International

The main advantage of trading using opposite Camellia Metal and Data International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Camellia Metal position performs unexpectedly, Data International 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 Data International will offset losses from the drop in Data International's long position.
The idea behind Camellia Metal Co and Data International Co 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.
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.

Other Complementary Tools

Competition Analyzer
Analyze and compare many basic indicators for a group of related or unrelated entities
Global Correlations
Find global opportunities by holding instruments from different markets
Idea Breakdown
Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes
Bollinger Bands
Use Bollinger Bands indicator to analyze target price for a given investing horizon
Sectors
List of equity sectors categorizing publicly traded companies based on their primary business activities