Correlation Between Harley Davidson and Camping World

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

Diversification Opportunities for Harley Davidson and Camping World

0.86
  Correlation Coefficient

Very poor diversification

The 3 months correlation between Harley and Camping is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Harley-Davidson 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 Harley Davidson 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 Harley-Davidson 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 Harley Davidson i.e., Harley Davidson and Camping World go up and down completely randomly.

Pair Corralation between Harley Davidson and Camping World

Considering the 90-day investment horizon Harley Davidson is expected to generate 1.69 times less return on investment than Camping World. But when comparing it to its historical volatility, Harley-Davidson is 1.43 times less risky than Camping World. It trades about 0.29 of its potential returns per unit of risk. Camping World Holdings is currently generating about 0.35 of returns per unit of risk over similar time horizon. If you would invest  2,224  in Camping World Holdings on May 11, 2022 and sell it today you would earn a total of  720.00  from holding Camping World Holdings or generate 32.37% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthStrong
Accuracy100.0%
ValuesDaily Returns

Harley-Davidson  vs.  Camping World Holdings

 Performance (%) 
       Timeline  
Harley-Davidson 
Harley Performance
3 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Harley-Davidson are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of rather fragile basic indicators, Harley Davidson may actually be approaching a critical reversion point that can send shares even higher in September 2022.

Harley 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 inconsistent basic indicators, Camping World may actually be approaching a critical reversion point that can send shares even higher in September 2022.

Camping Price Channel

Harley Davidson and Camping World Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Harley Davidson and Camping World

The main advantage of trading using opposite Harley Davidson and Camping World positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harley Davidson 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.
The idea behind Harley-Davidson 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.
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.

Other Complementary Tools

Stock Screener
Find equities using custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook.
Go
Equity Analysis
Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities
Go
My Watchlist Analysis
Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like
Go
Performance Analysis
Check effects of mean-variance optimization against your current asset allocation
Go
Portfolio Holdings
Check your current holdings and cash postion to detemine if your portfolio needs rebalancing
Go
Crypto Correlations
Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins
Go
Price Exposure Probability
Analyze equity upside and downside potential for a given time horizon across multiple markets
Go
Portfolio Manager
State of the art Portfolio Manager to monitor and improve performance of your invested capital
Go