Correlation Between CARPENTER and Europacific Growth
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By analyzing existing cross correlation between CARPENTER TECHNOLOGY P and Europacific Growth Fund, you can compare the effects of market volatilities on CARPENTER and Europacific Growth 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 Europacific Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of CARPENTER and Europacific Growth.
Diversification Opportunities for CARPENTER and Europacific Growth
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between CARPENTER and Europacific is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding CARPENTER TECHNOLOGY P and Europacific Growth Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Europacific Growth 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 Europacific Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Europacific Growth has no effect on the direction of CARPENTER i.e., CARPENTER and Europacific Growth go up and down completely randomly.
Pair Corralation between CARPENTER and Europacific Growth
Assuming the 90 days trading horizon CARPENTER TECHNOLOGY P is expected to generate 0.69 times more return on investment than Europacific Growth. However, CARPENTER TECHNOLOGY P is 1.44 times less risky than Europacific Growth. It trades about -0.11 of its potential returns per unit of risk. Europacific Growth Fund is currently generating about -0.16 per unit of risk. If you would invest 10,037 in CARPENTER TECHNOLOGY P on August 26, 2024 and sell it today you would lose (115.00) from holding CARPENTER TECHNOLOGY P or give up 1.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CARPENTER TECHNOLOGY P vs. Europacific Growth Fund
Performance |
| Timeline |
| CARPENTER TECHNOLOGY |
| Europacific Growth |
CARPENTER and Europacific Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CARPENTER and Europacific Growth
The main advantage of trading using opposite CARPENTER and Europacific Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CARPENTER position performs unexpectedly, Europacific Growth 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 Europacific Growth will offset losses from the drop in Europacific Growth's long position.| CARPENTER vs. Amgen Inc | CARPENTER vs. Tarsus Pharmaceuticals | CARPENTER vs. Ardelyx | CARPENTER vs. Genfit |
| Europacific Growth vs. Income Fund Of | Europacific Growth vs. New World Fund | Europacific Growth vs. American Mutual Fund | Europacific Growth vs. American Mutual Fund |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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