Correlation Between AKITA Drilling and CARPENTER
Specify exactly 2 symbols:
By analyzing existing cross correlation between AKITA Drilling and CARPENTER TECHNOLOGY P, you can compare the effects of market volatilities on AKITA Drilling 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 AKITA Drilling with a short position of CARPENTER. Check out your portfolio center. Please also check ongoing floating volatility patterns of AKITA Drilling and CARPENTER.
Diversification Opportunities for AKITA Drilling and CARPENTER
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between AKITA and CARPENTER is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding AKITA Drilling and CARPENTER TECHNOLOGY P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CARPENTER TECHNOLOGY and AKITA Drilling 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 AKITA Drilling 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 AKITA Drilling i.e., AKITA Drilling and CARPENTER go up and down completely randomly.
Pair Corralation between AKITA Drilling and CARPENTER
Assuming the 90 days horizon AKITA Drilling is expected to under-perform the CARPENTER. In addition to that, AKITA Drilling is 3.09 times more volatile than CARPENTER TECHNOLOGY P. It trades about -0.07 of its total potential returns per unit of risk. CARPENTER TECHNOLOGY P is currently generating about -0.05 per unit of volatility. If you would invest 10,027 in CARPENTER TECHNOLOGY P on September 2, 2024 and sell it today you would lose (47.00) from holding CARPENTER TECHNOLOGY P or give up 0.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 90.91% |
| Values | Daily Returns |
AKITA Drilling vs. CARPENTER TECHNOLOGY P
Performance |
| Timeline |
| AKITA Drilling |
| CARPENTER TECHNOLOGY |
AKITA Drilling and CARPENTER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AKITA Drilling and CARPENTER
The main advantage of trading using opposite AKITA Drilling and CARPENTER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AKITA Drilling 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.| AKITA Drilling vs. Cathedral Energy Services | AKITA Drilling vs. Vantage Drilling International | AKITA Drilling vs. Seadrill Limited | AKITA Drilling vs. Noble plc |
| CARPENTER vs. Universal Music Group | CARPENTER vs. NETGEAR | CARPENTER vs. AKITA Drilling | CARPENTER vs. Transocean |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Stocks Directory Find actively traded stocks across global markets | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |