Correlation Between Carpenter Technology and Haynes International
Can any of the company-specific risk be diversified away by investing in both Carpenter Technology and Haynes International 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 Haynes International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Carpenter Technology and Haynes International, you can compare the effects of market volatilities on Carpenter Technology and Haynes International 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 Haynes International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carpenter Technology and Haynes International.
Diversification Opportunities for Carpenter Technology and Haynes International
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Carpenter and Haynes is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Carpenter Technology and Haynes International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haynes International 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 Haynes International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Haynes International has no effect on the direction of Carpenter Technology i.e., Carpenter Technology and Haynes International go up and down completely randomly.
Pair Corralation between Carpenter Technology and Haynes International
If you would invest 17,903 in Carpenter Technology on November 18, 2024 and sell it today you would earn a total of 941.00 from holding Carpenter Technology or generate 5.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Carpenter Technology vs. Haynes International
Performance |
| Timeline |
| Carpenter Technology |
| Haynes International |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Carpenter Technology and Haynes International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carpenter Technology and Haynes International
The main advantage of trading using opposite Carpenter Technology and Haynes International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carpenter Technology position performs unexpectedly, Haynes International 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 Haynes International will offset losses from the drop in Haynes International's long position.| Carpenter Technology vs. Worthington Industries | Carpenter Technology vs. Ryerson Holding Corp | Carpenter Technology vs. Mueller Industries | Carpenter Technology vs. Allegheny Technologies Incorporated |
| Haynes International vs. Insteel Industries | Haynes International vs. Mayville Engineering Co | Haynes International vs. Gulf Island Fabrication | Haynes International vs. ESAB Corp |
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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