Correlation Between Camelot Excalibur and Camelot Event

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

By analyzing existing cross correlation between Camelot Excalibur Small and Camelot Event Driven, you can compare the effects of market volatilities on Camelot Excalibur and Camelot Event 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 Camelot Excalibur with a short position of Camelot Event. Check out your portfolio center. Please also check ongoing floating volatility patterns of Camelot Excalibur and Camelot Event.

Diversification Opportunities for Camelot Excalibur and Camelot Event

0.0

Correlation Coefficient

Camelot Excalibur  Camelot Event

Pay attention - limited upside

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

Pair Corralation between Camelot Excalibur and Camelot Event

If you would invest  1,970  in Camelot Event Driven on February 4, 2024 and sell it today you would earn a total of  7.00  from holding Camelot Event Driven or generate 0.36% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Camelot Excalibur Small  vs.  Camelot Event Driven

Camelot Excalibur Small

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Camelot Excalibur Small has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Camelot Excalibur is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Camelot Event Driven

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Camelot Event Driven are ranked lower than 11 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward indicators, Camelot Event is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Camelot Excalibur and Camelot Event

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

The idea behind Camelot Excalibur Small and Camelot Event Driven 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.