Correlation Between Carnival Plc and Interactive Strength

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

By analyzing existing cross correlation between Carnival Plc ADS and Interactive Strength Common, you can compare the effects of market volatilities on Carnival Plc and Interactive Strength 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 Carnival Plc with a short position of Interactive Strength. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carnival Plc and Interactive Strength.

Diversification Opportunities for Carnival Plc and Interactive Strength

0.36

Correlation Coefficient

Carnival Plc  Interactive Strength

Weak diversification

The 3 months correlation between Carnival and Interactive is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Carnival Plc ADS and Interactive Strength Common in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Interactive Strength and Carnival Plc 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 Carnival Plc ADS are associated (or correlated) with Interactive Strength. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Interactive Strength has no effect on the direction of Carnival Plc i.e., Carnival Plc and Interactive Strength go up and down completely randomly.

Pair Corralation between Carnival Plc and Interactive Strength

Considering the 90-day investment horizon Carnival Plc ADS is expected to generate 0.22 times more return on investment than Interactive Strength. However, Carnival Plc ADS is 4.47 times less risky than Interactive Strength. It trades about -0.12 of its potential returns per unit of risk. Interactive Strength Common is currently generating about -0.06 per unit of risk. If you would invest  2,333  in Carnival Plc ADS on December 23, 2024 and sell it today you would lose (466.00) from holding Carnival Plc ADS or give up 19.97% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Carnival Plc ADS  vs.  Interactive Strength Common

Carnival Plc ADS

Risk-Adjusted Performance

Very Weak

Over the last 90 days Carnival Plc ADS has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain quite persistent which may send shares a bit higher in April 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Interactive Strength

Risk-Adjusted Performance

Very Weak

Over the last 90 days Interactive Strength Common has generated negative risk-adjusted returns adding no value to investors with long positions. Even with sluggish performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in April 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with Carnival Plc and Interactive Strength

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

The idea behind Carnival Plc ADS and Interactive Strength Common 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.