Correlation Between HORDS and CAMELOT GHANA

Can any of the company-specific risk be diversified away by investing in both HORDS and CAMELOT GHANA 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 HORDS and CAMELOT GHANA into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between HORDS LTD and CAMELOT GHANA LTD, you can compare the effects of market volatilities on HORDS and CAMELOT GHANA 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 HORDS with a short position of CAMELOT GHANA. Check out your portfolio center. Please also check ongoing floating volatility patterns of HORDS and CAMELOT GHANA.

Diversification Opportunities for HORDS and CAMELOT GHANA

0.0

Correlation Coefficient

HORDS  CAMELOT GHANA

Pay attention - limited upside

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

Pair Corralation between HORDS and CAMELOT GHANA

If you would invest  12.00  in CAMELOT GHANA LTD on September 12, 2024 and sell it today you would earn a total of  2.00  from holding CAMELOT GHANA LTD or generate 16.67% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

HORDS LTD  vs.  CAMELOT GHANA LTD

HORDS LTD

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days HORDS LTD has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, HORDS is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

CAMELOT GHANA LTD

Risk-Adjusted Performance

14 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in CAMELOT GHANA LTD are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, CAMELOT GHANA unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with HORDS and CAMELOT GHANA

The main advantage of trading using opposite HORDS and CAMELOT GHANA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HORDS position performs unexpectedly, CAMELOT GHANA 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 CAMELOT GHANA will offset losses from the drop in CAMELOT GHANA's long position.

The idea behind HORDS LTD and CAMELOT GHANA LTD 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.

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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 the Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.