Correlation Between KBL Merger and Carlisle Companies
Can any of the company-specific risk be diversified away by investing in both KBL Merger and Carlisle Companies 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 KBL Merger and Carlisle Companies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KBL Merger Corp and Carlisle Companies Incorporated, you can compare the effects of market volatilities on KBL Merger and Carlisle Companies 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 KBL Merger with a short position of Carlisle Companies. Check out your portfolio center. Please also check ongoing floating volatility patterns of KBL Merger and Carlisle Companies.
Diversification Opportunities for KBL Merger and Carlisle Companies
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between KBL and Carlisle is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding KBL Merger Corp and Carlisle Companies Incorporate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Carlisle Companies and KBL Merger 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 KBL Merger Corp are associated (or correlated) with Carlisle Companies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Carlisle Companies has no effect on the direction of KBL Merger i.e., KBL Merger and Carlisle Companies go up and down completely randomly.
Pair Corralation between KBL Merger and Carlisle Companies
If you would invest 25,032 in Carlisle Companies Incorporated on December 29, 2023 and sell it today you would earn a total of 13,830 from holding Carlisle Companies Incorporated or generate 55.25% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
KBL Merger Corp vs. Carlisle Companies Incorporate
Performance |
Timeline |
KBL Merger Corp |
Risk-Adjusted Performance
0 of 100
Low | High |
Very Weak
Carlisle Companies |
KBL Merger and Carlisle Companies Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with KBL Merger and Carlisle Companies
The main advantage of trading using opposite KBL Merger and Carlisle Companies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KBL Merger position performs unexpectedly, Carlisle Companies 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 Carlisle Companies will offset losses from the drop in Carlisle Companies' long position.KBL Merger vs. Postal Realty Trust | KBL Merger vs. Boston Properties | KBL Merger vs. 24SevenOffice Group AB | KBL Merger vs. GEN Restaurant Group |
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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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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