Correlation Between CalAmp Corp and AC MOORE

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

Diversification Opportunities for CalAmp Corp and AC MOORE

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between CalAmp and ACMR1 is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CalAmp Corp and AC MOORE ARTS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AC MOORE ARTS and CalAmp Corp 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 CalAmp Corp are associated (or correlated) with AC MOORE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AC MOORE ARTS has no effect on the direction of CalAmp Corp i.e., CalAmp Corp and AC MOORE go up and down completely randomly.

Pair Corralation between CalAmp Corp and AC MOORE

If you would invest (100.00)  in AC MOORE ARTS on May 17, 2022 and sell it today you would earn a total of  100.00  from holding AC MOORE ARTS or generate -100.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

CalAmp Corp  vs.  AC MOORE ARTS

 Performance (%) 
       Timeline  
CalAmp Corp 
CalAmp Performance
1 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in CalAmp Corp are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of very conflicting primary indicators, CalAmp Corp may actually be approaching a critical reversion point that can send shares even higher in September 2022.

CalAmp Price Channel

AC MOORE ARTS 
ACMR1 Performance
0 of 100
Over the last 90 days AC MOORE ARTS has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, AC MOORE is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

CalAmp Corp and AC MOORE Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with CalAmp Corp and AC MOORE

The main advantage of trading using opposite CalAmp Corp and AC MOORE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CalAmp Corp position performs unexpectedly, AC MOORE 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 AC MOORE will offset losses from the drop in AC MOORE's long position.
The idea behind CalAmp Corp and AC MOORE ARTS 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.

AC MOORE ARTS

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The effect of pair diversification on risk is to reduce it, but we should note this doesn't apply to all risk types. When we trade pairs against AC MOORE as a counterpart, there is always some inherent risk that will never be diversified away no matter what. This volatility limits the effect of tactical diversification using pair trading. AC MOORE's systematic risk is the inherent uncertainty of the entire market, and therefore cannot be mitigated even by pair-trading it against the equity that is not highly correlated to it. On the other hand, AC MOORE's unsystematic risk describes the types of risk that we can protect against, at least to some degree, by selecting a matching pair that is not perfectly correlated to AC MOORE ARTS.
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 Price Transformation module to use Price Transformation models to analyze depth of different equity instruments across global markets.

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