Correlation Between Clarus Corp and Malibu Boats
Can any of the company-specific risk be diversified away by investing in both Clarus Corp and Malibu Boats 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 Clarus Corp and Malibu Boats into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Clarus Corp and Malibu Boats, you can compare the effects of market volatilities on Clarus Corp and Malibu Boats 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 Clarus Corp with a short position of Malibu Boats. Check out your portfolio center. Please also check ongoing floating volatility patterns of Clarus Corp and Malibu Boats.
Diversification Opportunities for Clarus Corp and Malibu Boats
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Clarus and Malibu is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Clarus Corp and Malibu Boats in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Malibu Boats and Clarus Corp 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 Clarus Corp are associated (or correlated) with Malibu Boats. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Malibu Boats has no effect on the direction of Clarus Corp i.e., Clarus Corp and Malibu Boats go up and down completely randomly.
Pair Corralation between Clarus Corp and Malibu Boats
Given the investment horizon of 90 days Clarus Corp is expected to generate 1.31 times more return on investment than Malibu Boats. However, Clarus Corp is 1.31 times more volatile than Malibu Boats. It trades about 0.09 of its potential returns per unit of risk. Malibu Boats is currently generating about -0.06 per unit of risk. If you would invest 426.00 in Clarus Corp on September 20, 2024 and sell it today you would earn a total of 25.00 from holding Clarus Corp or generate 5.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Clarus Corp vs. Malibu Boats
Performance |
| Timeline |
| Clarus Corp |
| Malibu Boats |
Clarus Corp and Malibu Boats Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Clarus Corp and Malibu Boats
The main advantage of trading using opposite Clarus Corp and Malibu Boats positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Clarus Corp position performs unexpectedly, Malibu Boats 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 Malibu Boats will offset losses from the drop in Malibu Boats' long position.| Clarus Corp vs. Johnson Outdoors | Clarus Corp vs. Escalade Incorporated | Clarus Corp vs. JAKKS Pacific | Clarus Corp vs. Six Flags Entertainment |
| Malibu Boats vs. Clarus Corp | Malibu Boats vs. OneSpaWorld Holdings | Malibu Boats vs. Leatt Corp | Malibu Boats vs. Six Flags Entertainment |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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