Correlation Between Celestica and CARPENTER
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By analyzing existing cross correlation between Celestica and CARPENTER TECHNOLOGY P, you can compare the effects of market volatilities on Celestica 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 Celestica with a short position of CARPENTER. Check out your portfolio center. Please also check ongoing floating volatility patterns of Celestica and CARPENTER.
Diversification Opportunities for Celestica and CARPENTER
Good diversification
The 3 months correlation between Celestica and CARPENTER is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Celestica and CARPENTER TECHNOLOGY P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CARPENTER TECHNOLOGY and Celestica 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 Celestica 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 Celestica i.e., Celestica and CARPENTER go up and down completely randomly.
Pair Corralation between Celestica and CARPENTER
Considering the 90-day investment horizon Celestica is expected to generate 8.53 times more return on investment than CARPENTER. However, Celestica is 8.53 times more volatile than CARPENTER TECHNOLOGY P. It trades about 0.28 of its potential returns per unit of risk. CARPENTER TECHNOLOGY P is currently generating about 0.02 per unit of risk. If you would invest 4,971 in Celestica on September 19, 2024 and sell it today you would earn a total of 4,240 from holding Celestica or generate 85.29% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 96.88% |
Values | Daily Returns |
Celestica vs. CARPENTER TECHNOLOGY P
Performance |
Timeline |
Celestica |
CARPENTER TECHNOLOGY |
Celestica and CARPENTER Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Celestica and CARPENTER
The main advantage of trading using opposite Celestica and CARPENTER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Celestica 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.Celestica vs. IONQ Inc | Celestica vs. Quantum | Celestica vs. Super Micro Computer | Celestica vs. Red Cat Holdings |
CARPENTER vs. Celestica | CARPENTER vs. Texas Roadhouse | CARPENTER vs. Dominos Pizza | CARPENTER vs. Cannae 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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