Correlation Between Horizon Core and Clockwise Capital

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Can any of the company-specific risk be diversified away by investing in both Horizon Core and Clockwise Capital 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 Horizon Core and Clockwise Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Horizon Core Equity and Clockwise Capital, you can compare the effects of market volatilities on Horizon Core and Clockwise Capital 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 Horizon Core with a short position of Clockwise Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Horizon Core and Clockwise Capital.

Diversification Opportunities for Horizon Core and Clockwise Capital

0.67
  Correlation Coefficient

Poor diversification

The 3 months correlation between Horizon and Clockwise is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Horizon Core Equity and Clockwise Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clockwise Capital and Horizon Core 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 Horizon Core Equity are associated (or correlated) with Clockwise Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clockwise Capital has no effect on the direction of Horizon Core i.e., Horizon Core and Clockwise Capital go up and down completely randomly.

Pair Corralation between Horizon Core and Clockwise Capital

If you would invest  2,759  in Horizon Core Equity on November 7, 2025 and sell it today you would earn a total of  93.00  from holding Horizon Core Equity or generate 3.37% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy1.67%
ValuesDaily Returns

Horizon Core Equity  vs.  Clockwise Capital

 Performance 
       Timeline  
Horizon Core Equity 

Risk-Adjusted Performance

Mild

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Horizon Core Equity are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of fairly strong basic indicators, Horizon Core is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.
Clockwise Capital 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Clockwise Capital has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Clockwise Capital is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Horizon Core and Clockwise Capital Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Horizon Core and Clockwise Capital

The main advantage of trading using opposite Horizon Core and Clockwise Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Horizon Core position performs unexpectedly, Clockwise Capital 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 Clockwise Capital will offset losses from the drop in Clockwise Capital's long position.
The idea behind Horizon Core Equity and Clockwise Capital pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.

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