Correlation Between Camellia Plc and Dow Jones
Can any of the company-specific risk be diversified away by investing in both Camellia Plc and Dow Jones 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 Plc and Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Camellia Plc and Dow Jones Industrial, you can compare the effects of market volatilities on Camellia Plc and Dow Jones 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 Plc with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Camellia Plc and Dow Jones.
Diversification Opportunities for Camellia Plc and Dow Jones
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Camellia and Dow is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Camellia Plc and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial and Camellia Plc 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 Plc are associated (or correlated) with Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of Camellia Plc i.e., Camellia Plc and Dow Jones go up and down completely randomly.
Pair Corralation between Camellia Plc and Dow Jones
Assuming the 90 days trading horizon Camellia Plc is expected to generate 2.5 times more return on investment than Dow Jones. However, Camellia Plc is 2.5 times more volatile than Dow Jones Industrial. It trades about 0.12 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.14 per unit of risk. If you would invest 437,000 in Camellia Plc on September 13, 2024 and sell it today you would earn a total of 61,500 from holding Camellia Plc or generate 14.07% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 98.44% |
Values | Daily Returns |
Camellia Plc vs. Dow Jones Industrial
Performance |
Timeline |
Camellia Plc and Dow Jones Volatility Contrast
Predicted Return Density |
Returns |
Camellia Plc
Pair trading matchups for Camellia Plc
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Camellia Plc and Dow Jones
The main advantage of trading using opposite Camellia Plc and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Camellia Plc position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' long position.Camellia Plc vs. Alfa Financial Software | Camellia Plc vs. Cincinnati Financial Corp | Camellia Plc vs. Prudential Financial | Camellia Plc vs. Ameriprise Financial |
Dow Jones vs. ChampionX | Dow Jones vs. Highway Holdings Limited | Dow Jones vs. Westinghouse Air Brake | Dow Jones vs. Cementos Pacasmayo SAA |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
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 | |
Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |