Correlation Between Viskase Companies and Carrier Global

Can any of the company-specific risk be diversified away by investing in both Viskase Companies and Carrier Global at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Viskase Companies and Carrier Global into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Viskase Companies and Carrier Global Corp, you can compare the effects of market volatilities on Viskase Companies and Carrier Global 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 Viskase Companies with a short position of Carrier Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Viskase Companies and Carrier Global.

Diversification Opportunities for Viskase Companies and Carrier Global

0.0

Correlation Coefficient

Viskase Companies  Carrier Global

Pay attention - limited upside

The 3 months correlation between Viskase and Carrier is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Viskase Companies and Carrier Global Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Carrier Global Corp and Viskase Companies 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 Viskase Companies are associated (or correlated) with Carrier Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Carrier Global Corp has no effect on the direction of Viskase Companies i.e., Viskase Companies and Carrier Global go up and down completely randomly.

Pair Corralation between Viskase Companies and Carrier Global

If you would invest (100.00) in Viskase Companies on December 29, 2024 and sell it today you would earn a total of  100.00  from holding Viskase Companies or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Viskase Companies  vs.  Carrier Global Corp

Viskase Companies

Risk-Adjusted Performance

Very Weak

Over the last 90 days Viskase Companies has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Viskase Companies is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

Carrier Global Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Carrier Global Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest inconsistent performance, the Stock's basic indicators remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the enterprise retail investors.

Pair Trading with Viskase Companies and Carrier Global

The main advantage of trading using opposite Viskase Companies and Carrier Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Viskase Companies position performs unexpectedly, Carrier Global 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 Carrier Global will offset losses from the drop in Carrier Global's long position.

The idea behind Viskase Companies and Carrier Global Corp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.