Correlation Between Carlisle Companies and ICU Medical
Can any of the company-specific risk be diversified away by investing in both Carlisle Companies and ICU Medical 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 Carlisle Companies and ICU Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Carlisle Companies Incorporated and ICU Medical, you can compare the effects of market volatilities on Carlisle Companies and ICU Medical 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 Carlisle Companies with a short position of ICU Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carlisle Companies and ICU Medical.
Diversification Opportunities for Carlisle Companies and ICU Medical
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Carlisle and ICU is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Carlisle Companies Incorporate and ICU Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ICU Medical and Carlisle 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 Carlisle Companies Incorporated are associated (or correlated) with ICU Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ICU Medical has no effect on the direction of Carlisle Companies i.e., Carlisle Companies and ICU Medical go up and down completely randomly.
Pair Corralation between Carlisle Companies and ICU Medical
Considering the 90-day investment horizon Carlisle Companies Incorporated is expected to generate 0.95 times more return on investment than ICU Medical. However, Carlisle Companies Incorporated is 1.06 times less risky than ICU Medical. It trades about 0.03 of its potential returns per unit of risk. ICU Medical is currently generating about 0.0 per unit of risk. If you would invest 37,723 in Carlisle Companies Incorporated on June 3, 2025 and sell it today you would earn a total of 866.00 from holding Carlisle Companies Incorporated or generate 2.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Carlisle Companies Incorporate vs. ICU Medical
Performance |
| Timeline |
| Carlisle Companies |
| ICU Medical |
Carlisle Companies and ICU Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carlisle Companies and ICU Medical
The main advantage of trading using opposite Carlisle Companies and ICU Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carlisle Companies position performs unexpectedly, ICU Medical 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 ICU Medical will offset losses from the drop in ICU Medical's long position.| Carlisle Companies vs. Brady | Carlisle Companies vs. Donaldson | Carlisle Companies vs. Lennox International | Carlisle Companies vs. Masco |
| ICU Medical vs. Repro Med Systems | ICU Medical vs. InfuSystems Holdings | ICU Medical vs. Milestone Scientific | ICU Medical vs. Sysmex Corp |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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