Correlation Between Carlisle Companies and Caesarstone
Can any of the company-specific risk be diversified away by investing in both Carlisle Companies and Caesarstone 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 Carlisle Companies and Caesarstone into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Carlisle Companies Incorporated and Caesarstone, you can compare the effects of market volatilities on Carlisle Companies and Caesarstone 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 Carlisle Companies with a short position of Caesarstone. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carlisle Companies and Caesarstone.
Diversification Opportunities for Carlisle Companies and Caesarstone
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Carlisle and Caesarstone is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Carlisle Companies Incorporate and Caesarstone in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Caesarstone and Carlisle Companies 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 Carlisle Companies Incorporated are associated (or correlated) with Caesarstone. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Caesarstone has no effect on the direction of Carlisle Companies i.e., Carlisle Companies and Caesarstone go up and down completely randomly.
Pair Corralation between Carlisle Companies and Caesarstone
Considering the 90-day investment horizon Carlisle Companies Incorporated is expected to generate 0.5 times more return on investment than Caesarstone. However, Carlisle Companies Incorporated is 2.0 times less risky than Caesarstone. It trades about 0.08 of its potential returns per unit of risk. Caesarstone is currently generating about -0.01 per unit of risk. If you would invest 25,022 in Carlisle Companies Incorporated on August 24, 2024 and sell it today you would earn a total of 19,943 from holding Carlisle Companies Incorporated or generate 79.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Carlisle Companies Incorporate vs. Caesarstone
Performance |
| Timeline |
| Carlisle Companies |
| Caesarstone |
Carlisle Companies and Caesarstone Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carlisle Companies and Caesarstone
The main advantage of trading using opposite Carlisle Companies and Caesarstone positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carlisle Companies position performs unexpectedly, Caesarstone 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 Caesarstone will offset losses from the drop in Caesarstone's long position.| Carlisle Companies vs. Lennox International | Carlisle Companies vs. Fortune Brands Innovations | Carlisle Companies vs. Trane Technologies plc | Carlisle Companies vs. Johnson Controls International |
| Caesarstone vs. Gibraltar Industries | Caesarstone vs. Quanex Building Products | Caesarstone vs. Jeld Wen Holding | Caesarstone vs. Perma Pipe International Holdings |
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
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |