Correlation Between Bowlin Travel and Card Factory
Can any of the company-specific risk be diversified away by investing in both Bowlin Travel and Card Factory 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 Bowlin Travel and Card Factory into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bowlin Travel Centers and Card Factory plc, you can compare the effects of market volatilities on Bowlin Travel and Card Factory 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 Bowlin Travel with a short position of Card Factory. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bowlin Travel and Card Factory.
Diversification Opportunities for Bowlin Travel and Card Factory
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Bowlin and Card is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Bowlin Travel Centers and Card Factory plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Card Factory plc and Bowlin Travel 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 Bowlin Travel Centers are associated (or correlated) with Card Factory. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Card Factory plc has no effect on the direction of Bowlin Travel i.e., Bowlin Travel and Card Factory go up and down completely randomly.
Pair Corralation between Bowlin Travel and Card Factory
Given the investment horizon of 90 days Bowlin Travel Centers is expected to generate 0.25 times more return on investment than Card Factory. However, Bowlin Travel Centers is 4.01 times less risky than Card Factory. It trades about 0.01 of its potential returns per unit of risk. Card Factory plc is currently generating about -0.25 per unit of risk. If you would invest 400.00 in Bowlin Travel Centers on November 3, 2024 and sell it today you would earn a total of 0.00 from holding Bowlin Travel Centers or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Bowlin Travel Centers vs. Card Factory plc
Performance |
| Timeline |
| Bowlin Travel Centers |
| Card Factory plc |
Bowlin Travel and Card Factory Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bowlin Travel and Card Factory
The main advantage of trading using opposite Bowlin Travel and Card Factory positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bowlin Travel position performs unexpectedly, Card Factory 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 Card Factory will offset losses from the drop in Card Factory's long position.| Bowlin Travel vs. Paysafe | Bowlin Travel vs. Asure Software | Bowlin Travel vs. Parker Hannifin | Bowlin Travel vs. Everus Construction Group |
| Card Factory vs. Ulta Beauty | Card Factory vs. Williams Sonoma | Card Factory vs. Dicks Sporting Goods | Card Factory vs. Best Buy Co |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |