Correlation Between Carpenter Technology and MasTec
Can any of the company-specific risk be diversified away by investing in both Carpenter Technology and MasTec 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 Carpenter Technology and MasTec into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Carpenter Technology and MasTec Inc, you can compare the effects of market volatilities on Carpenter Technology and MasTec 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 Technology with a short position of MasTec. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carpenter Technology and MasTec.
Diversification Opportunities for Carpenter Technology and MasTec
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Carpenter and MasTec is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Carpenter Technology and MasTec Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MasTec Inc and Carpenter Technology 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 are associated (or correlated) with MasTec. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MasTec Inc has no effect on the direction of Carpenter Technology i.e., Carpenter Technology and MasTec go up and down completely randomly.
Pair Corralation between Carpenter Technology and MasTec
Considering the 90-day investment horizon Carpenter Technology is expected to generate 1.42 times more return on investment than MasTec. However, Carpenter Technology is 1.42 times more volatile than MasTec Inc. It trades about 0.14 of its potential returns per unit of risk. MasTec Inc is currently generating about 0.05 per unit of risk. If you would invest 25,606 in Carpenter Technology on October 7, 2025 and sell it today you would earn a total of 8,228 from holding Carpenter Technology or generate 32.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Carpenter Technology vs. MasTec Inc
Performance |
| Timeline |
| Carpenter Technology |
| MasTec Inc |
Carpenter Technology and MasTec Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carpenter Technology and MasTec
The main advantage of trading using opposite Carpenter Technology and MasTec positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carpenter Technology position performs unexpectedly, MasTec 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 MasTec will offset losses from the drop in MasTec's long position.| Carpenter Technology vs. Allegheny Technologies Incorporated | Carpenter Technology vs. TransUnion | Carpenter Technology vs. Woodward | Carpenter Technology vs. UL Solutions |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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