Correlation Between Carriage Services and Build A
Can any of the company-specific risk be diversified away by investing in both Carriage Services and Build A 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 Carriage Services and Build A into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Carriage Services and Build A Bear Workshop, you can compare the effects of market volatilities on Carriage Services and Build A 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 Carriage Services with a short position of Build A. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carriage Services and Build A.
Diversification Opportunities for Carriage Services and Build A
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Carriage and Build is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Carriage Services and Build A Bear Workshop in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Build A Bear and Carriage Services 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 Carriage Services are associated (or correlated) with Build A. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Build A Bear has no effect on the direction of Carriage Services i.e., Carriage Services and Build A go up and down completely randomly.
Pair Corralation between Carriage Services and Build A
Considering the 90-day investment horizon Carriage Services is expected to under-perform the Build A. But the stock apears to be less risky and, when comparing its historical volatility, Carriage Services is 2.11 times less risky than Build A. The stock trades about -0.1 of its potential returns per unit of risk. The Build A Bear Workshop is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 5,377 in Build A Bear Workshop on August 19, 2025 and sell it today you would lose (444.00) from holding Build A Bear Workshop or give up 8.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Carriage Services vs. Build A Bear Workshop
Performance |
| Timeline |
| Carriage Services |
| Build A Bear |
Carriage Services and Build A Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carriage Services and Build A
The main advantage of trading using opposite Carriage Services and Build A positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carriage Services position performs unexpectedly, Build A 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 Build A will offset losses from the drop in Build A's long position.| Carriage Services vs. Build A Bear Workshop | Carriage Services vs. Douglas Dynamics | Carriage Services vs. Cracker Barrel Old | Carriage Services vs. Myers Industries |
| Build A vs. Olaplex Holdings | Build A vs. Liquidity Services | Build A vs. Jumia Technologies AG | Build A vs. Carriage Services |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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