Correlation Between Caldwell Partners and Vitreous Glass

Can any of the company-specific risk be diversified away by investing in both Caldwell Partners and Vitreous Glass 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 Caldwell Partners and Vitreous Glass into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Caldwell Partners International and Vitreous Glass, you can compare the effects of market volatilities on Caldwell Partners and Vitreous Glass 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 Caldwell Partners with a short position of Vitreous Glass. Check out your portfolio center. Please also check ongoing floating volatility patterns of Caldwell Partners and Vitreous Glass.

Diversification Opportunities for Caldwell Partners and Vitreous Glass

-0.21

Correlation Coefficient

Caldwell Partners  Vitreous Glass

Very good diversification

The 3 months correlation between Caldwell and Vitreous is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Caldwell Partners Internationa and Vitreous Glass in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vitreous Glass and Caldwell Partners 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 Caldwell Partners International are associated (or correlated) with Vitreous Glass. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vitreous Glass has no effect on the direction of Caldwell Partners i.e., Caldwell Partners and Vitreous Glass go up and down completely randomly.

Pair Corralation between Caldwell Partners and Vitreous Glass

Assuming the 90 days trading horizon Caldwell Partners International is expected to under-perform the Vitreous Glass. In addition to that, Caldwell Partners is 2.28 times more volatile than Vitreous Glass. It trades about -0.01 of its total potential returns per unit of risk. Vitreous Glass is currently generating about 0.03 per unit of volatility. If you would invest  512.00  in Vitreous Glass on September 3, 2024 and sell it today you would earn a total of  13.00  from holding Vitreous Glass or generate 2.54% return on investment over 90 days.

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

Caldwell Partners Internationa  vs.  Vitreous Glass

Caldwell Partners

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Caldwell Partners International has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy essential indicators, Caldwell Partners is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Vitreous Glass

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Vitreous Glass are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of fairly stable basic indicators, Vitreous Glass is not utilizing all of its potentials. The newest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Caldwell Partners and Vitreous Glass

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

The idea behind Caldwell Partners International and Vitreous Glass 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.