Correlation Between CARPENTER and Gerdau SA
Specify exactly 2 symbols:
By analyzing existing cross correlation between CARPENTER TECHNOLOGY P and Gerdau SA ADR, you can compare the effects of market volatilities on CARPENTER and Gerdau SA 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 Gerdau SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of CARPENTER and Gerdau SA.
Diversification Opportunities for CARPENTER and Gerdau SA
Average diversification
The 3 months correlation between CARPENTER and Gerdau is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding CARPENTER TECHNOLOGY P and Gerdau SA ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gerdau SA ADR 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 Gerdau SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gerdau SA ADR has no effect on the direction of CARPENTER i.e., CARPENTER and Gerdau SA go up and down completely randomly.
Pair Corralation between CARPENTER and Gerdau SA
Assuming the 90 days trading horizon CARPENTER TECHNOLOGY P is expected to generate 0.26 times more return on investment than Gerdau SA. However, CARPENTER TECHNOLOGY P is 3.86 times less risky than Gerdau SA. It trades about 0.02 of its potential returns per unit of risk. Gerdau SA ADR is currently generating about -0.01 per unit of risk. If you would invest 9,565 in CARPENTER TECHNOLOGY P on September 19, 2024 and sell it today you would earn a total of 445.00 from holding CARPENTER TECHNOLOGY P or generate 4.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
CARPENTER TECHNOLOGY P vs. Gerdau SA ADR
Performance |
| Timeline |
| CARPENTER TECHNOLOGY |
| Gerdau SA ADR |
CARPENTER and Gerdau SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CARPENTER and Gerdau SA
The main advantage of trading using opposite CARPENTER and Gerdau SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CARPENTER position performs unexpectedly, Gerdau SA 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 Gerdau SA will offset losses from the drop in Gerdau SA's long position.| CARPENTER vs. AEP TEX INC | CARPENTER vs. US BANK NATIONAL | CARPENTER vs. Applied Blockchain | CARPENTER vs. BigBearai Holdings |
| Gerdau SA vs. Usinas Siderurgicas de | Gerdau SA vs. Ternium SA ADR | Gerdau SA vs. ArcelorMittal SA ADR | Gerdau SA vs. POSCO 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |