Correlation Between Carlton Investments and CSL
Can any of the company-specific risk be diversified away by investing in both Carlton Investments and CSL 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 Carlton Investments and CSL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Carlton Investments and CSL, you can compare the effects of market volatilities on Carlton Investments and CSL 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 Carlton Investments with a short position of CSL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carlton Investments and CSL.
Diversification Opportunities for Carlton Investments and CSL
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Carlton and CSL is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Carlton Investments and CSL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CSL and Carlton Investments 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 Carlton Investments are associated (or correlated) with CSL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CSL has no effect on the direction of Carlton Investments i.e., Carlton Investments and CSL go up and down completely randomly.
Pair Corralation between Carlton Investments and CSL
Assuming the 90 days trading horizon Carlton Investments is expected to generate 0.9 times more return on investment than CSL. However, Carlton Investments is 1.11 times less risky than CSL. It trades about 0.14 of its potential returns per unit of risk. CSL is currently generating about -0.1 per unit of risk. If you would invest 3,000 in Carlton Investments on September 15, 2024 and sell it today you would earn a total of 80.00 from holding Carlton Investments or generate 2.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Carlton Investments vs. CSL
Performance |
| Timeline |
| Carlton Investments |
| CSL |
Carlton Investments and CSL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carlton Investments and CSL
The main advantage of trading using opposite Carlton Investments and CSL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carlton Investments position performs unexpectedly, CSL 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 CSL will offset losses from the drop in CSL's long position.| Carlton Investments vs. Australian Foundation Investment | Carlton Investments vs. MFF Capital Investments | Carlton Investments vs. Metrics Master Income | Carlton Investments vs. L1 Long Short |
| CSL vs. Dicker Data | CSL vs. Hudson Investment Group | CSL vs. Carlton Investments | CSL vs. K2 Asset Management |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |