Correlation Between 00108WAF7 and CARPENTER
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By analyzing existing cross correlation between AEP TEX INC and CARPENTER TECHNOLOGY P, you can compare the effects of market volatilities on 00108WAF7 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 00108WAF7 with a short position of CARPENTER. Check out your portfolio center. Please also check ongoing floating volatility patterns of 00108WAF7 and CARPENTER.
Diversification Opportunities for 00108WAF7 and CARPENTER
Significant diversification
The 3 months correlation between 00108WAF7 and CARPENTER is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding AEP TEX INC and CARPENTER TECHNOLOGY P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CARPENTER TECHNOLOGY and 00108WAF7 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 AEP TEX INC 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 00108WAF7 i.e., 00108WAF7 and CARPENTER go up and down completely randomly.
Pair Corralation between 00108WAF7 and CARPENTER
Assuming the 90 days trading horizon AEP TEX INC is expected to generate 6.32 times more return on investment than CARPENTER. However, 00108WAF7 is 6.32 times more volatile than CARPENTER TECHNOLOGY P. It trades about 0.11 of its potential returns per unit of risk. CARPENTER TECHNOLOGY P is currently generating about -0.05 per unit of risk. If you would invest 7,351 in AEP TEX INC on September 2, 2024 and sell it today you would earn a total of 317.00 from holding AEP TEX INC or generate 4.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 70.0% |
| Values | Daily Returns |
AEP TEX INC vs. CARPENTER TECHNOLOGY P
Performance |
| Timeline |
| AEP TEX INC |
| CARPENTER TECHNOLOGY |
00108WAF7 and CARPENTER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 00108WAF7 and CARPENTER
The main advantage of trading using opposite 00108WAF7 and CARPENTER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 00108WAF7 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.| 00108WAF7 vs. Zhihu Inc ADR | 00108WAF7 vs. Playtika Holding Corp | 00108WAF7 vs. Thor Industries | 00108WAF7 vs. Dana Inc |
| CARPENTER vs. Universal Music Group | CARPENTER vs. NETGEAR | CARPENTER vs. AKITA Drilling | CARPENTER vs. Transocean |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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