Correlation Between Camelot Event and Camelot Premium

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

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

Diversification Opportunities for Camelot Event and Camelot Premium

0.0

Correlation Coefficient

Camelot Event  Camelot Premium

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 Event Driven and Camelot Premium Return in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Camelot Premium Return and Camelot Event 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 Event Driven are associated (or correlated) with Camelot Premium. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Camelot Premium Return has no effect on the direction of Camelot Event i.e., Camelot Event and Camelot Premium go up and down completely randomly.

Pair Corralation between Camelot Event and Camelot Premium

If you would invest  1,882  in Camelot Event Driven on February 4, 2024 and sell it today you would earn a total of  46.00  from holding Camelot Event Driven or generate 2.44% return on investment over 90 days.

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

Camelot Event Driven  vs.  Camelot Premium Return

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 basic indicators, Camelot Event is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Camelot Premium Return

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Camelot Premium Return has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong forward indicators, Camelot Premium 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 Event and Camelot Premium

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

The idea behind Camelot Event Driven and Camelot Premium Return 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.