Correlation Between Polished and Card Factory
Can any of the company-specific risk be diversified away by investing in both Polished and Card Factory 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 Polished and Card Factory into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Polished and Card Factory plc, you can compare the effects of market volatilities on Polished and Card Factory 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 Polished with a short position of Card Factory. Check out your portfolio center. Please also check ongoing floating volatility patterns of Polished and Card Factory.
Diversification Opportunities for Polished and Card Factory
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Polished and Card is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Polished and Card Factory plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Card Factory plc and Polished 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 Polished are associated (or correlated) with Card Factory. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Card Factory plc has no effect on the direction of Polished i.e., Polished and Card Factory go up and down completely randomly.
Pair Corralation between Polished and Card Factory
If you would invest 54.00 in Polished on August 27, 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 | 4.76% |
| Values | Daily Returns |
Polished vs. Card Factory plc
Performance |
| Timeline |
| Polished |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Card Factory plc |
Polished and Card Factory Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Polished and Card Factory
The main advantage of trading using opposite Polished and Card Factory positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Polished position performs unexpectedly, Card Factory 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 Card Factory will offset losses from the drop in Card Factory's long position.| Polished vs. Sally Beauty Holdings | Polished vs. National Vision Holdings | Polished vs. Big 5 Sporting | Polished vs. Pet Acquisition LLC |
| Card Factory vs. Dixons Carphone plc | Card Factory vs. Ceconomy AG ADR | Card Factory vs. Tandy Leather Factory | Card Factory vs. Green River Gold |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |