Correlation Between Sparta Capital and CARPENTER
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By analyzing existing cross correlation between Sparta Capital and CARPENTER TECHNOLOGY P, you can compare the effects of market volatilities on Sparta Capital 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 Sparta Capital with a short position of CARPENTER. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sparta Capital and CARPENTER.
Diversification Opportunities for Sparta Capital and CARPENTER
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Sparta and CARPENTER is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Sparta Capital and CARPENTER TECHNOLOGY P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CARPENTER TECHNOLOGY and Sparta Capital 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 Sparta Capital 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 Sparta Capital i.e., Sparta Capital and CARPENTER go up and down completely randomly.
Pair Corralation between Sparta Capital and CARPENTER
Assuming the 90 days horizon Sparta Capital is expected to under-perform the CARPENTER. In addition to that, Sparta Capital is 8.42 times more volatile than CARPENTER TECHNOLOGY P. It trades about -0.13 of its total potential returns per unit of risk. CARPENTER TECHNOLOGY P is currently generating about 0.0 per unit of volatility. If you would invest 10,000 in CARPENTER TECHNOLOGY P on August 23, 2024 and sell it today you would lose (20.00) from holding CARPENTER TECHNOLOGY P or give up 0.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 97.58% |
| Values | Daily Returns |
Sparta Capital vs. CARPENTER TECHNOLOGY P
Performance |
| Timeline |
| Sparta Capital |
| CARPENTER TECHNOLOGY |
Sparta Capital and CARPENTER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sparta Capital and CARPENTER
The main advantage of trading using opposite Sparta Capital and CARPENTER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sparta Capital 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.| Sparta Capital vs. Shimano Inc ADR | Sparta Capital vs. Yamaha Corp DRC | Sparta Capital vs. Vista Outdoor | Sparta Capital vs. Hasbro Inc |
| CARPENTER vs. Freedom Holding Corp | CARPENTER vs. Playtika Holding Corp | CARPENTER vs. Dave Busters Entertainment | CARPENTER vs. Integral Ad Science |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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