Correlation Between Mcbc Holdings and Camping World

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

Diversification Opportunities for Mcbc Holdings and Camping World

0.73
  Correlation Coefficient

Poor diversification

The 3 months correlation between Mcbc Holdings and Camping is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Mcbc Holdings 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 Mcbc Holdings 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 Mcbc Holdings 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 Mcbc Holdings i.e., Mcbc Holdings and Camping World go up and down completely randomly.

Pair Corralation between Mcbc Holdings and Camping World

Given the investment horizon of 90 days Mcbc Holdings is expected to under-perform the Camping World. But the stock apears to be less risky and, when comparing its historical volatility, Mcbc Holdings is 1.27 times less risky than Camping World. The stock trades about -0.17 of its potential returns per unit of risk. The Camping World Holdings is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest  2,847  in Camping World Holdings on July 6, 2022 and sell it today you would lose (117.00)  from holding Camping World Holdings or give up 4.11% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Mcbc Holdings  vs.  Camping World Holdings

 Performance (%) 
       Timeline  
Mcbc Holdings 
Mcbc Holdings Performance
0 of 100
Over the last 90 days Mcbc Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable technical and fundamental indicators, Mcbc Holdings is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Mcbc Holdings Price Channel

Camping World Holdings 
Camping Performance
6 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Camping World Holdings are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite nearly conflicting basic indicators, Camping World reported solid returns over the last few months and may actually be approaching a breakup point.

Camping Price Channel

Mcbc Holdings and Camping World Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Mcbc Holdings and Camping World

The main advantage of trading using opposite Mcbc Holdings and Camping World positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mcbc Holdings 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.
Mcbc Holdings vs. Amazon Inc
The idea behind Mcbc Holdings 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 Stock Screener module to find equities using custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..

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