Correlation Between Campbell Resources and Commerce Group

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

By analyzing existing cross correlation between Campbell Resources and Commerce Group Corp, you can compare the effects of market volatilities on Campbell Resources and Commerce Group 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 Campbell Resources with a short position of Commerce Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Campbell Resources and Commerce Group.

Diversification Opportunities for Campbell Resources and Commerce Group

0.0

Correlation Coefficient

Campbell Resources  Commerce Group

Pay attention - limited upside

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

Pair Corralation between Campbell Resources and Commerce Group

If you would invest  0.01  in Commerce Group Corp on July 2, 2024 and sell it today you would earn a total of  0.00  from holding Commerce Group Corp or generate 0.0% return on investment over 90 days.

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

Campbell Resources  vs.  Commerce Group Corp

Campbell Resources

Risk-Adjusted Performance

0 of 100

Very Weak

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

Commerce Group Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Commerce Group Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy fundamental indicators, Commerce Group is not utilizing all of its potentials. The newest stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Campbell Resources and Commerce Group

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

The idea behind Campbell Resources and Commerce Group Corp 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.