Correlation Between Camellia Metal and AVer Information

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Can any of the company-specific risk be diversified away by investing in both Camellia Metal and AVer Information 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 AVer Information 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 AVer Information, you can compare the effects of market volatilities on Camellia Metal and AVer Information 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 AVer Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Camellia Metal and AVer Information.

Diversification Opportunities for Camellia Metal and AVer Information

-0.14
  Correlation Coefficient

Good diversification

The 3 months correlation between Camellia and AVer is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Camellia Metal Co and AVer Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AVer Information 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 AVer Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AVer Information has no effect on the direction of Camellia Metal i.e., Camellia Metal and AVer Information go up and down completely randomly.

Pair Corralation between Camellia Metal and AVer Information

Assuming the 90 days trading horizon Camellia Metal Co is expected to generate 1.22 times more return on investment than AVer Information. However, Camellia Metal is 1.22 times more volatile than AVer Information. It trades about 0.09 of its potential returns per unit of risk. AVer Information is currently generating about -0.05 per unit of risk. If you would invest  1,285  in Camellia Metal Co on April 23, 2025 and sell it today you would earn a total of  150.00  from holding Camellia Metal Co or generate 11.67% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Camellia Metal Co  vs.  AVer Information

 Performance 
       Timeline  
Camellia Metal 

Risk-Adjusted Performance

Modest

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Camellia Metal Co are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Camellia Metal may actually be approaching a critical reversion point that can send shares even higher in August 2025.
AVer Information 

Risk-Adjusted Performance

Very Weak

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

Camellia Metal and AVer Information Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Camellia Metal and AVer Information

The main advantage of trading using opposite Camellia Metal and AVer Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Camellia Metal position performs unexpectedly, AVer Information 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 AVer Information will offset losses from the drop in AVer Information's long position.
The idea behind Camellia Metal Co and AVer Information 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.
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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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.

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