Correlation Between CARPENTER and Inverse Sp
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By analyzing existing cross correlation between CARPENTER TECHNOLOGY P and Inverse Sp 500, you can compare the effects of market volatilities on CARPENTER and Inverse Sp 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 Inverse Sp. Check out your portfolio center. Please also check ongoing floating volatility patterns of CARPENTER and Inverse Sp.
Diversification Opportunities for CARPENTER and Inverse Sp
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CARPENTER and Inverse is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding CARPENTER TECHNOLOGY P and Inverse Sp 500 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inverse Sp 500 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 Inverse Sp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inverse Sp 500 has no effect on the direction of CARPENTER i.e., CARPENTER and Inverse Sp go up and down completely randomly.
Pair Corralation between CARPENTER and Inverse Sp
Assuming the 90 days trading horizon CARPENTER TECHNOLOGY P is expected to generate 0.5 times more return on investment than Inverse Sp. However, CARPENTER TECHNOLOGY P is 1.99 times less risky than Inverse Sp. It trades about 0.01 of its potential returns per unit of risk. Inverse Sp 500 is currently generating about -0.04 per unit of risk. If you would invest 9,947 in CARPENTER TECHNOLOGY P on December 4, 2024 and sell it today you would earn a total of 100.00 from holding CARPENTER TECHNOLOGY P or generate 1.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CARPENTER TECHNOLOGY P vs. Inverse Sp 500
Performance |
| Timeline |
| CARPENTER TECHNOLOGY |
| Inverse Sp 500 |
CARPENTER and Inverse Sp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CARPENTER and Inverse Sp
The main advantage of trading using opposite CARPENTER and Inverse Sp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CARPENTER position performs unexpectedly, Inverse Sp 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 Inverse Sp will offset losses from the drop in Inverse Sp's long position.| CARPENTER vs. Avarone Metals | CARPENTER vs. Yuexiu Transport Infrastructure | CARPENTER vs. Uber Technologies | CARPENTER vs. Sphere 3D Corp |
| Inverse Sp vs. Blackrock Retirement Income | Inverse Sp vs. Franklin Lifesmart Retirement | Inverse Sp vs. Hartford Moderate Allocation | Inverse Sp vs. Great West Moderately Servative |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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