Correlation Between Carpenter Technology and Carmit
Can any of the company-specific risk be diversified away by investing in both Carpenter Technology and Carmit 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 Carpenter Technology and Carmit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Carpenter Technology and Carmit, you can compare the effects of market volatilities on Carpenter Technology and Carmit 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 Carpenter Technology with a short position of Carmit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carpenter Technology and Carmit.
Diversification Opportunities for Carpenter Technology and Carmit
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Carpenter and Carmit is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Carpenter Technology and Carmit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Carmit and Carpenter Technology 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 Carpenter Technology are associated (or correlated) with Carmit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Carmit has no effect on the direction of Carpenter Technology i.e., Carpenter Technology and Carmit go up and down completely randomly.
Pair Corralation between Carpenter Technology and Carmit
If you would invest 6,509 in Carpenter Technology on March 6, 2024 and sell it today you would earn a total of 4,431 from holding Carpenter Technology or generate 68.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 1.59% |
| Values | Daily Returns |
Carpenter Technology vs. Carmit
Performance |
| Timeline |
| Carpenter Technology |
| Carmit |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Carpenter Technology and Carmit Volatility Contrast
Predicted Return Density |
| Returns |