Correlation Between Card Factory and Polished
Can any of the company-specific risk be diversified away by investing in both Card Factory and Polished 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 Card Factory and Polished into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Card Factory plc and Polished, you can compare the effects of market volatilities on Card Factory and Polished 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 Card Factory with a short position of Polished. Check out your portfolio center. Please also check ongoing floating volatility patterns of Card Factory and Polished.
Diversification Opportunities for Card Factory and Polished
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Card and Polished is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Card Factory plc and Polished in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Polished and Card Factory 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 Card Factory plc are associated (or correlated) with Polished. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Polished has no effect on the direction of Card Factory i.e., Card Factory and Polished go up and down completely randomly.
Pair Corralation between Card Factory and Polished
If you would invest 54.00 in Polished on August 30, 2024 and sell it today you would earn a total of 0.00 from holding Polished or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.79% |
| Values | Daily Returns |
Card Factory plc vs. Polished
Performance |
| Timeline |
| Card Factory plc |
| Polished |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Card Factory and Polished Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Card Factory and Polished
The main advantage of trading using opposite Card Factory and Polished positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Card Factory position performs unexpectedly, Polished 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 Polished will offset losses from the drop in Polished's long position.| Card Factory vs. Dixons Carphone plc | Card Factory vs. Ceconomy AG ADR | Card Factory vs. Tandy Leather Factory | Card Factory vs. Green River Gold |
| Polished vs. Sally Beauty Holdings | Polished vs. National Vision Holdings | Polished vs. Big 5 Sporting | Polished vs. Pet Acquisition LLC |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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