Correlation Between Iteris and CAMP4 THERAPEUTICS

Can any of the company-specific risk be diversified away by investing in both Iteris and CAMP4 THERAPEUTICS 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 Iteris and CAMP4 THERAPEUTICS into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Iteris Inc and CAMP4 THERAPEUTICS PORATION, you can compare the effects of market volatilities on Iteris and CAMP4 THERAPEUTICS 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 Iteris with a short position of CAMP4 THERAPEUTICS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Iteris and CAMP4 THERAPEUTICS.

Diversification Opportunities for Iteris and CAMP4 THERAPEUTICS

-0.12

Correlation Coefficient

Iteris  CAMP4 THERAPEUTICS

Good diversification

The 3 months correlation between Iteris and CAMP4 is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Iteris Inc and CAMP4 THERAPEUTICS PORATION in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CAMP4 THERAPEUTICS and Iteris 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 Iteris Inc are associated (or correlated) with CAMP4 THERAPEUTICS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CAMP4 THERAPEUTICS has no effect on the direction of Iteris i.e., Iteris and CAMP4 THERAPEUTICS go up and down completely randomly.

Pair Corralation between Iteris and CAMP4 THERAPEUTICS

Considering the 90-day investment horizon Iteris Inc is expected to generate 12.33 times more return on investment than CAMP4 THERAPEUTICS. However, Iteris is 12.33 times more volatile than CAMP4 THERAPEUTICS PORATION. It trades about 0.19 of its potential returns per unit of risk. CAMP4 THERAPEUTICS PORATION is currently generating about -0.02 per unit of risk. If you would invest  714.00  in Iteris Inc on September 30, 2024 and sell it today you would earn a total of  25,935  from holding Iteris Inc or generate 3632.35% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	54.55%
Values	Daily Returns

Iteris Inc  vs.  CAMP4 THERAPEUTICS PORATION

Iteris Inc

Risk-Adjusted Performance

0 of 100

Good

Over the last 90 days Iteris Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly unsteady basic indicators, Iteris demonstrated solid returns over the last few months and may actually be approaching a breakup point.

CAMP4 THERAPEUTICS

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days CAMP4 THERAPEUTICS PORATION has generated negative risk-adjusted returns adding no value to investors with long positions. Even with inconsistent performance in the last few months, the Stock's primary indicators remain relatively invariable which may send shares a bit higher in January 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with Iteris and CAMP4 THERAPEUTICS

The main advantage of trading using opposite Iteris and CAMP4 THERAPEUTICS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Iteris position performs unexpectedly, CAMP4 THERAPEUTICS 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 CAMP4 THERAPEUTICS will offset losses from the drop in CAMP4 THERAPEUTICS's long position.

The idea behind Iteris Inc and CAMP4 THERAPEUTICS PORATION 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 the Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.