Correlation Between High Yield and CARPENTER
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By analyzing existing cross correlation between High Yield Municipal Fund and CARPENTER TECHNOLOGY P, you can compare the effects of market volatilities on High Yield and CARPENTER 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 High Yield with a short position of CARPENTER. Check out your portfolio center. Please also check ongoing floating volatility patterns of High Yield and CARPENTER.
Diversification Opportunities for High Yield and CARPENTER
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between High and CARPENTER is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding High Yield Municipal Fund and CARPENTER TECHNOLOGY P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CARPENTER TECHNOLOGY and High Yield 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 High Yield Municipal Fund are associated (or correlated) with CARPENTER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CARPENTER TECHNOLOGY has no effect on the direction of High Yield i.e., High Yield and CARPENTER go up and down completely randomly.
Pair Corralation between High Yield and CARPENTER
Assuming the 90 days horizon High Yield Municipal Fund is expected to generate 0.61 times more return on investment than CARPENTER. However, High Yield Municipal Fund is 1.64 times less risky than CARPENTER. It trades about 0.12 of its potential returns per unit of risk. CARPENTER TECHNOLOGY P is currently generating about 0.02 per unit of risk. If you would invest 808.00 in High Yield Municipal Fund on September 12, 2024 and sell it today you would earn a total of 97.00 from holding High Yield Municipal Fund or generate 12.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.7% |
| Values | Daily Returns |
High Yield Municipal Fund vs. CARPENTER TECHNOLOGY P
Performance |
| Timeline |
| High Yield Municipal |
| CARPENTER TECHNOLOGY |
High Yield and CARPENTER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with High Yield and CARPENTER
The main advantage of trading using opposite High Yield and CARPENTER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if High Yield position performs unexpectedly, CARPENTER 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 CARPENTER will offset losses from the drop in CARPENTER's long position.| High Yield vs. High Yield Fund Investor | High Yield vs. Intermediate Term Tax Free Bond | High Yield vs. California High Yield Municipal | High Yield vs. T Rowe Price |
| CARPENTER vs. Merit Medical Systems | CARPENTER vs. Neogen | CARPENTER vs. SunLink Health Systems | CARPENTER vs. Luxfer Holdings PLC |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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