Correlation Between Haynes International and Carpenter Technology

Can any of the company-specific risk be diversified away by investing in both Haynes International and Carpenter Technology 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 Haynes International and Carpenter Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Haynes International and Carpenter Technology, you can compare the effects of market volatilities on Haynes International and Carpenter Technology 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 Haynes International with a short position of Carpenter Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haynes International and Carpenter Technology.

Diversification Opportunities for Haynes International and Carpenter Technology

0.0

Correlation Coefficient

Haynes International  Carpenter Technology

Pay attention - limited upside

The 3 months correlation between Haynes and Carpenter is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Haynes International and Carpenter Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Carpenter Technology and Haynes International 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 Haynes International are associated (or correlated) with Carpenter Technology. 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 Haynes International i.e., Haynes International and Carpenter Technology go up and down completely randomly.

Pair Corralation between Haynes International and Carpenter Technology

If you would invest  20,907  in Carpenter Technology on May 7, 2025 and sell it today you would earn a total of  4,394  from holding Carpenter Technology or generate 21.02% return on investment over 90 days.

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

Haynes International  vs.  Carpenter Technology

Haynes International

Risk-Adjusted Performance

Very Weak

Over the last 90 days Haynes International has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Haynes International is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Carpenter Technology

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Carpenter Technology are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively inconsistent basic indicators, Carpenter Technology unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Haynes International and Carpenter Technology

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

The idea behind Haynes International and Carpenter Technology 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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.