Correlation Between Camping World and U Power
Can any of the company-specific risk be diversified away by investing in both Camping World and U Power 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 U Power 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 U Power Limited, you can compare the effects of market volatilities on Camping World and U Power 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 U Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Camping World and U Power.
Diversification Opportunities for Camping World and U Power
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Camping and UCAR is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Camping World Holdings and U Power Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on U Power Limited 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 U Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of U Power Limited has no effect on the direction of Camping World i.e., Camping World and U Power go up and down completely randomly.
Pair Corralation between Camping World and U Power
Considering the 90-day investment horizon Camping World Holdings is expected to generate 0.93 times more return on investment than U Power. However, Camping World Holdings is 1.08 times less risky than U Power. It trades about 0.17 of its potential returns per unit of risk. U Power Limited is currently generating about -0.05 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. U Power Limited
Performance |
| Timeline |
| Camping World Holdings |
| U Power Limited |
Camping World and U Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Camping World and U Power
The main advantage of trading using opposite Camping World and U Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Camping World position performs unexpectedly, U Power 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 U Power will offset losses from the drop in U Power's long position.| Camping World vs. Group 1 Automotive | Camping World vs. Sonic Automotive | Camping World vs. Penske Automotive Group | Camping World vs. Lithia Motors |
| U Power vs. Kaixin Auto Holdings | U Power vs. Uxin | U Power vs. SunCar Technology Group | U Power vs. Carvana 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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