Correlation Between Pop Culture and Celtic Plc

Can any of the company-specific risk be diversified away by investing in both Pop Culture and Celtic Plc 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 Pop Culture and Celtic Plc into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Pop Culture Group and Celtic plc, you can compare the effects of market volatilities on Pop Culture and Celtic Plc 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 Pop Culture with a short position of Celtic Plc. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pop Culture and Celtic Plc.

Diversification Opportunities for Pop Culture and Celtic Plc

-0.14

Correlation Coefficient

Pop Culture  Celtic Plc

Good diversification

The 3 months correlation between Pop and Celtic is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Pop Culture Group and Celtic plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Celtic plc and Pop Culture 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 Pop Culture Group are associated (or correlated) with Celtic Plc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Celtic plc has no effect on the direction of Pop Culture i.e., Pop Culture and Celtic Plc go up and down completely randomly.

Pair Corralation between Pop Culture and Celtic Plc

Given the investment horizon of 90 days Pop Culture Group is expected to generate 7.65 times more return on investment than Celtic Plc. However, Pop Culture is 7.65 times more volatile than Celtic plc. It trades about 0.04 of its potential returns per unit of risk. Celtic plc is currently generating about 0.04 per unit of risk. If you would invest  108.00  in Pop Culture Group on October 11, 2024 and sell it today you would earn a total of  6.00  from holding Pop Culture Group or generate 5.56% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Pop Culture Group  vs.  Celtic plc

Pop Culture Group

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Pop Culture Group are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable basic indicators, Pop Culture is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Celtic plc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Celtic plc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical and fundamental indicators, Celtic Plc is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Pop Culture and Celtic Plc

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

The idea behind Pop Culture Group and Celtic 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.