Correlation Between Camping World and Lazydays Holdings
Can any of the company-specific risk be diversified away by investing in both Camping World and Lazydays Holdings 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 Camping World and Lazydays Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Camping World Holdings and Lazydays Holdings, you can compare the effects of market volatilities on Camping World and Lazydays Holdings 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 Camping World with a short position of Lazydays Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Camping World and Lazydays Holdings.
Diversification Opportunities for Camping World and Lazydays Holdings
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Camping and Lazydays is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Camping World Holdings and Lazydays Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lazydays Holdings and Camping World 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 Camping World Holdings are associated (or correlated) with Lazydays Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lazydays Holdings has no effect on the direction of Camping World i.e., Camping World and Lazydays Holdings go up and down completely randomly.
Pair Corralation between Camping World and Lazydays Holdings
Considering the 90-day investment horizon Camping World Holdings is expected to generate 0.47 times more return on investment than Lazydays Holdings. However, Camping World Holdings is 2.12 times less risky than Lazydays Holdings. It trades about 0.17 of its potential returns per unit of risk. Lazydays Holdings is currently generating about -0.01 per unit of risk. If you would invest 2,083 in Camping World Holdings on August 24, 2024 and sell it today you would earn a total of 317.00 from holding Camping World Holdings or generate 15.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Camping World Holdings vs. Lazydays Holdings
Performance |
| Timeline |
| Camping World Holdings |
| Lazydays Holdings |
Camping World and Lazydays Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Camping World and Lazydays Holdings
The main advantage of trading using opposite Camping World and Lazydays Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Camping World position performs unexpectedly, Lazydays Holdings 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 Lazydays Holdings will offset losses from the drop in Lazydays Holdings' long position.| Camping World vs. Group 1 Automotive | Camping World vs. Sonic Automotive | Camping World vs. Penske Automotive Group | Camping World vs. Lithia Motors |
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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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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