Correlation Between Applied Uv and Camping World

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Can any of the company-specific risk be diversified away by investing in both Applied Uv and Camping World 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 Applied Uv and Camping World into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Applied Uv and Camping World Holdings, you can compare the effects of market volatilities on Applied Uv and Camping World 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 Applied Uv with a short position of Camping World. Check out your portfolio center. Please also check ongoing floating volatility patterns of Applied Uv and Camping World.

Diversification Opportunities for Applied Uv and Camping World

-0.36
  Correlation Coefficient

Very good diversification

The 3 months correlation between Applied and Camping is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Applied Uv and Camping World Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Camping World Holdings and Applied Uv 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 Applied Uv are associated (or correlated) with Camping World. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Camping World Holdings has no effect on the direction of Applied Uv i.e., Applied Uv and Camping World go up and down completely randomly.

Pair Corralation between Applied Uv and Camping World

Given the investment horizon of 90 days Applied Uv is expected to under-perform the Camping World. But the stock apears to be less risky and, when comparing its historical volatility, Applied Uv is 1.18 times less risky than Camping World. The stock trades about -0.21 of its potential returns per unit of risk. The Camping World Holdings is currently generating about -0.13 of returns per unit of risk over similar time horizon. If you would invest  2,967  in Camping World Holdings on July 3, 2022 and sell it today you would lose (435.00)  from holding Camping World Holdings or give up 14.66% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy95.45%
ValuesDaily Returns

Applied Uv  vs.  Camping World Holdings

 Performance (%) 
       Timeline  
Applied Uv 
Applied Performance
0 of 100
Over the last 90 days Applied Uv has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in November 2022. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Applied Price Channel

Camping World Holdings 
Camping Performance
3 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Camping World Holdings are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly conflicting basic indicators, Camping World may actually be approaching a critical reversion point that can send shares even higher in November 2022.

Camping Price Channel

Applied Uv and Camping World Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Applied Uv and Camping World

The main advantage of trading using opposite Applied Uv and Camping World positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Applied Uv position performs unexpectedly, Camping World 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 Camping World will offset losses from the drop in Camping World's long position.
Applied Uv vs. Amazon Inc
The idea behind Applied Uv and Camping World Holdings 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.
Camping World vs. Amazon Inc
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.

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