Correlation Between Camping World and Arcimoto

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

Diversification Opportunities for Camping World and Arcimoto

0.1
  Correlation Coefficient

Average diversification

The 3 months correlation between Camping and Arcimoto is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Camping World Holdings and Arcimoto in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Arcimoto 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 Arcimoto. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Arcimoto has no effect on the direction of Camping World i.e., Camping World and Arcimoto go up and down completely randomly.

Pair Corralation between Camping World and Arcimoto

Considering the 90-day investment horizon Camping World Holdings is expected to generate 0.5 times more return on investment than Arcimoto. However, Camping World Holdings is 2.01 times less risky than Arcimoto. It trades about 0.03 of its potential returns per unit of risk. Arcimoto is currently generating about 0.01 per unit of risk. If you would invest  2,685  in Camping World Holdings on May 18, 2022 and sell it today you would earn a total of  653.00  from holding Camping World Holdings or generate 24.32% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Camping World Holdings  vs.  Arcimoto

 Performance (%) 
       Timeline  
Camping World Holdings 
Camping Performance
8 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Camping World Holdings are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, Camping World reported solid returns over the last few months and may actually be approaching a breakup point.

Camping Price Channel

Arcimoto 
Arcimoto Performance
0 of 100
Over the last 90 days Arcimoto has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in September 2022. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Arcimoto Price Channel

Camping World and Arcimoto Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Camping World and Arcimoto

The main advantage of trading using opposite Camping World and Arcimoto positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Camping World position performs unexpectedly, Arcimoto 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 Arcimoto will offset losses from the drop in Arcimoto's long position.
The idea behind Camping World Holdings and Arcimoto 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.
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 Bond Directory module to find actively traded corporate debentures issued by US companies.

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