Correlation Between Luxfer Holdings and CARPENTER
Specify exactly 2 symbols:
By analyzing existing cross correlation between Luxfer Holdings PLC and CARPENTER TECHNOLOGY P, you can compare the effects of market volatilities on Luxfer Holdings 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 Luxfer Holdings with a short position of CARPENTER. Check out your portfolio center. Please also check ongoing floating volatility patterns of Luxfer Holdings and CARPENTER.
Diversification Opportunities for Luxfer Holdings and CARPENTER
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Luxfer and CARPENTER is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Luxfer Holdings PLC and CARPENTER TECHNOLOGY P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CARPENTER TECHNOLOGY and Luxfer Holdings 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 Luxfer Holdings PLC 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 Luxfer Holdings i.e., Luxfer Holdings and CARPENTER go up and down completely randomly.
Pair Corralation between Luxfer Holdings and CARPENTER
Given the investment horizon of 90 days Luxfer Holdings PLC is expected to generate 5.77 times more return on investment than CARPENTER. However, Luxfer Holdings is 5.77 times more volatile than CARPENTER TECHNOLOGY P. It trades about 0.08 of its potential returns per unit of risk. CARPENTER TECHNOLOGY P is currently generating about 0.0 per unit of risk. If you would invest 1,103 in Luxfer Holdings PLC on September 13, 2024 and sell it today you would earn a total of 262.50 from holding Luxfer Holdings PLC or generate 23.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.6% |
| Values | Daily Returns |
Luxfer Holdings PLC vs. CARPENTER TECHNOLOGY P
Performance |
| Timeline |
| Luxfer Holdings PLC |
| CARPENTER TECHNOLOGY |
Luxfer Holdings and CARPENTER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Luxfer Holdings and CARPENTER
The main advantage of trading using opposite Luxfer Holdings and CARPENTER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Luxfer Holdings 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.| Luxfer Holdings vs. Graham | Luxfer Holdings vs. Enerpac Tool Group | Luxfer Holdings vs. Kadant Inc | Luxfer Holdings vs. Omega Flex |
| CARPENTER vs. HUTCHMED DRC | CARPENTER vs. The Coca Cola | CARPENTER vs. Amgen Inc | CARPENTER vs. enVVeno Medical 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |