Correlation Between Camden National and DXGE

Can any of the company-specific risk be diversified away by investing in both Camden National and DXGE 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 DXGE into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Camden National and DXGE, you can compare the effects of market volatilities on Camden National and DXGE 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 DXGE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Camden National and DXGE.

Diversification Opportunities for Camden National and DXGE

0.0

Correlation Coefficient

Camden National  DXGE

Pay attention - limited upside

The 3 months correlation between Camden and DXGE is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Camden National and DXGE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DXGE 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 DXGE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DXGE has no effect on the direction of Camden National i.e., Camden National and DXGE go up and down completely randomly.

Pair Corralation between Camden National and DXGE

If you would invest (100.00) in DXGE on December 28, 2024 and sell it today you would earn a total of  100.00  from holding DXGE or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Camden National  vs.  DXGE

Camden National

Risk-Adjusted Performance

Very Weak

Over the last 90 days Camden National has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Camden National is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

DXGE

Risk-Adjusted Performance

Very Weak

Over the last 90 days DXGE has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, DXGE is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Camden National and DXGE

The main advantage of trading using opposite Camden National and DXGE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Camden National position performs unexpectedly, DXGE 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 DXGE will offset losses from the drop in DXGE's long position.

The idea behind Camden National and DXGE 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.