Correlation Between Carson Cumberbatch and THE KINGSBURY

Can any of the company-specific risk be diversified away by investing in both Carson Cumberbatch and THE KINGSBURY 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 Carson Cumberbatch and THE KINGSBURY into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Carson Cumberbatch PLC and THE KINGSBURY PLC, you can compare the effects of market volatilities on Carson Cumberbatch and THE KINGSBURY 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 Carson Cumberbatch with a short position of THE KINGSBURY. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carson Cumberbatch and THE KINGSBURY.

Diversification Opportunities for Carson Cumberbatch and THE KINGSBURY

0.0

Correlation Coefficient

Carson Cumberbatch  THE KINGSBURY

Pay attention - limited upside

The 3 months correlation between Carson and THE is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Carson Cumberbatch PLC and THE KINGSBURY PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on THE KINGSBURY PLC and Carson Cumberbatch 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 Carson Cumberbatch PLC are associated (or correlated) with THE KINGSBURY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of THE KINGSBURY PLC has no effect on the direction of Carson Cumberbatch i.e., Carson Cumberbatch and THE KINGSBURY go up and down completely randomly.

Pair Corralation between Carson Cumberbatch and THE KINGSBURY

If you would invest  28,000  in Carson Cumberbatch PLC on October 24, 2024 and sell it today you would earn a total of  10,075  from holding Carson Cumberbatch PLC or generate 35.98% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Carson Cumberbatch PLC  vs.  THE KINGSBURY PLC

Carson Cumberbatch PLC

Risk-Adjusted Performance

17 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Carson Cumberbatch PLC are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Carson Cumberbatch sustained solid returns over the last few months and may actually be approaching a breakup point.

THE KINGSBURY PLC

Risk-Adjusted Performance

0 of 100

Solid

Over the last 90 days THE KINGSBURY PLC has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, THE KINGSBURY is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Carson Cumberbatch and THE KINGSBURY

The main advantage of trading using opposite Carson Cumberbatch and THE KINGSBURY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carson Cumberbatch position performs unexpectedly, THE KINGSBURY 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 THE KINGSBURY will offset losses from the drop in THE KINGSBURY's long position.

The idea behind Carson Cumberbatch PLC and THE KINGSBURY PLC 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.

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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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..