Correlation Between CARPENTER and High Yield
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By analyzing existing cross correlation between CARPENTER TECHNOLOGY P and High Yield Municipal Fund, you can compare the effects of market volatilities on CARPENTER and High Yield 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 with a short position of High Yield. Check out your portfolio center. Please also check ongoing floating volatility patterns of CARPENTER and High Yield.
Diversification Opportunities for CARPENTER and High Yield
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between CARPENTER and High is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding CARPENTER TECHNOLOGY P and High Yield Municipal Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on High Yield Municipal and CARPENTER 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 P are associated (or correlated) with High Yield. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of High Yield Municipal has no effect on the direction of CARPENTER i.e., CARPENTER and High Yield go up and down completely randomly.
Pair Corralation between CARPENTER and High Yield
Assuming the 90 days trading horizon CARPENTER is expected to generate 4.0 times less return on investment than High Yield. In addition to that, CARPENTER is 1.64 times more volatile than High Yield Municipal Fund. It trades about 0.02 of its total potential returns per unit of risk. High Yield Municipal Fund is currently generating about 0.12 per unit of volatility. If you would invest 808.00 in High Yield Municipal Fund on September 12, 2024 and sell it today you would earn a total of 97.00 from holding High Yield Municipal Fund or generate 12.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.7% |
| Values | Daily Returns |
CARPENTER TECHNOLOGY P vs. High Yield Municipal Fund
Performance |
| Timeline |
| CARPENTER TECHNOLOGY |
| High Yield Municipal |
CARPENTER and High Yield Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CARPENTER and High Yield
The main advantage of trading using opposite CARPENTER and High Yield positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CARPENTER position performs unexpectedly, High Yield 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 High Yield will offset losses from the drop in High Yield's long position.| CARPENTER vs. Merit Medical Systems | CARPENTER vs. Neogen | CARPENTER vs. SunLink Health Systems | CARPENTER vs. Luxfer Holdings PLC |
| High Yield vs. High Yield Fund Investor | High Yield vs. Intermediate Term Tax Free Bond | High Yield vs. California High Yield Municipal | High Yield vs. T Rowe Price |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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