Correlation Between Carpenter Technology and Tingyi Holding
Can any of the company-specific risk be diversified away by investing in both Carpenter Technology and Tingyi Holding 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 Tingyi Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Carpenter Technology and Tingyi Holding Corp, you can compare the effects of market volatilities on Carpenter Technology and Tingyi Holding 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 Tingyi Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carpenter Technology and Tingyi Holding.
Diversification Opportunities for Carpenter Technology and Tingyi Holding
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Carpenter and Tingyi is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Carpenter Technology and Tingyi Holding Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tingyi Holding Corp 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 Tingyi Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tingyi Holding Corp has no effect on the direction of Carpenter Technology i.e., Carpenter Technology and Tingyi Holding go up and down completely randomly.
Pair Corralation between Carpenter Technology and Tingyi Holding
If you would invest 6,765 in Carpenter Technology on September 14, 2024 and sell it today you would earn a total of 10,644 from holding Carpenter Technology or generate 157.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 0.37% |
| Values | Daily Returns |
Carpenter Technology vs. Tingyi Holding Corp
Performance |
| Timeline |
| Carpenter Technology |
| Tingyi Holding Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Carpenter Technology and Tingyi Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carpenter Technology and Tingyi Holding
The main advantage of trading using opposite Carpenter Technology and Tingyi Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carpenter Technology position performs unexpectedly, Tingyi Holding 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 Tingyi Holding will offset losses from the drop in Tingyi Holding'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 |
| Tingyi Holding vs. Torque Lifestyle Brands | Tingyi Holding vs. Naturally Splendid Enterprises | Tingyi Holding vs. Aryzta AG PK | Tingyi Holding vs. First Pacific |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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