Correlation Between Camping World and Clearwater Paper

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Camping World and Clearwater Paper 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 Camping World and Clearwater Paper into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Camping World Holdings and Clearwater Paper Corp, you can compare the effects of market volatilities on Camping World and Clearwater Paper 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 Camping World with a short position of Clearwater Paper. Check out your portfolio center. Please also check ongoing floating volatility patterns of Camping World and Clearwater Paper.

Diversification Opportunities for Camping World and Clearwater Paper

0.61
  Correlation Coefficient

Poor diversification

The 3 months correlation between Camping and Clearwater is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Camping World Holdings and Clearwater Paper Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clearwater Paper Corp and Camping World 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 Camping World Holdings are associated (or correlated) with Clearwater Paper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clearwater Paper Corp has no effect on the direction of Camping World i.e., Camping World and Clearwater Paper go up and down completely randomly.

Pair Corralation between Camping World and Clearwater Paper

Considering the 90-day investment horizon Camping World Holdings is expected to under-perform the Clearwater Paper. In addition to that, Camping World is 1.03 times more volatile than Clearwater Paper Corp. It trades about -0.02 of its total potential returns per unit of risk. Clearwater Paper Corp is currently generating about 0.01 per unit of volatility. If you would invest  4,145  in Clearwater Paper Corp on August 29, 2022 and sell it today you would lose (198.00)  from holding Clearwater Paper Corp or give up 4.78% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Camping World Holdings  vs.  Clearwater Paper Corp

 Performance (%) 
       Timeline  
Camping World Holdings 
Camping Performance
0 of 100
Over the last 90 days Camping World Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Camping World is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Camping Price Channel

Clearwater Paper Corp 
Clearwater Performance
0 of 100
Over the last 90 days Clearwater Paper Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's essential indicators remain stable and the latest fuss on Wall Street may also be a sign of long-term gains for the venture sophisticated investors.

Clearwater Price Channel

Camping World and Clearwater Paper Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Camping World and Clearwater Paper

The main advantage of trading using opposite Camping World and Clearwater Paper positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Camping World position performs unexpectedly, Clearwater Paper 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 Clearwater Paper will offset losses from the drop in Clearwater Paper's long position.
Camping World vs. Zhongsheng Group Holdings
Camping World vs. CarMax Inc
Camping World vs. Penske Automotive Group
Camping World vs. Autonation
The idea behind Camping World Holdings and Clearwater Paper Corp 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.
Clearwater Paper vs. Holmen Ab
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.

Other Complementary Tools

Options Analysis
Analyze and evaluate options and option chains as a potential hedge for your portfolios
Go
Options Analysis
Analyze and evaluate options and option chains as a potential hedge for your portfolios
Go
Insider Screener
Find insiders across different sectors to evaluate their impact on performance
Go
Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites
Go
Idea Optimizer
Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio
Go
Watchlist Optimization
Optimize watchlists to build efficient portfolio or rebalance existing positions based on mean-variance optimization algorithm
Go
Headlines Timeline
Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity
Go