Correlation Between Acushnet Holdings and Clarus Corp
Can any of the company-specific risk be diversified away by investing in both Acushnet Holdings and Clarus Corp 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 Acushnet Holdings and Clarus Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Acushnet Holdings Corp and Clarus Corp, you can compare the effects of market volatilities on Acushnet Holdings and Clarus Corp 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 Acushnet Holdings with a short position of Clarus Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Acushnet Holdings and Clarus Corp.
Diversification Opportunities for Acushnet Holdings and Clarus Corp
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Acushnet and Clarus is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Acushnet Holdings Corp and Clarus Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clarus Corp and Acushnet Holdings 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 Acushnet Holdings Corp are associated (or correlated) with Clarus Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clarus Corp has no effect on the direction of Acushnet Holdings i.e., Acushnet Holdings and Clarus Corp go up and down completely randomly.
Pair Corralation between Acushnet Holdings and Clarus Corp
Given the investment horizon of 90 days Acushnet Holdings Corp is expected to generate 0.57 times more return on investment than Clarus Corp. However, Acushnet Holdings Corp is 1.75 times less risky than Clarus Corp. It trades about 0.06 of its potential returns per unit of risk. Clarus Corp is currently generating about -0.03 per unit of risk. If you would invest 4,893 in Acushnet Holdings Corp on August 27, 2024 and sell it today you would earn a total of 2,528 from holding Acushnet Holdings Corp or generate 51.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Acushnet Holdings Corp vs. Clarus Corp
Performance |
| Timeline |
| Acushnet Holdings Corp |
| Clarus Corp |
Acushnet Holdings and Clarus Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Acushnet Holdings and Clarus Corp
The main advantage of trading using opposite Acushnet Holdings and Clarus Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Acushnet Holdings position performs unexpectedly, Clarus Corp 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 Clarus Corp will offset losses from the drop in Clarus Corp's long position.| Acushnet Holdings vs. MCBC Holdings | Acushnet Holdings vs. Winnebago Industries | Acushnet Holdings vs. LCI Industries | Acushnet Holdings vs. Thor Industries |
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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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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