Correlation Between Carriage Services and Federal Home
Can any of the company-specific risk be diversified away by investing in both Carriage Services and Federal Home 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 Federal Home into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Carriage Services and Federal Home Loan, you can compare the effects of market volatilities on Carriage Services and Federal Home 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 Federal Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carriage Services and Federal Home.
Diversification Opportunities for Carriage Services and Federal Home
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Carriage and Federal is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Carriage Services and Federal Home Loan in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federal Home Loan 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 Federal Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Federal Home Loan has no effect on the direction of Carriage Services i.e., Carriage Services and Federal Home go up and down completely randomly.
Pair Corralation between Carriage Services and Federal Home
Considering the 90-day investment horizon Carriage Services is expected to generate 1.0 times more return on investment than Federal Home. However, Carriage Services is 1.0 times less risky than Federal Home. It trades about 0.02 of its potential returns per unit of risk. Federal Home Loan is currently generating about -0.06 per unit of risk. If you would invest 4,231 in Carriage Services on September 3, 2025 and sell it today you would earn a total of 38.00 from holding Carriage Services or generate 0.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Carriage Services vs. Federal Home Loan
Performance |
| Timeline |
| Carriage Services |
| Federal Home Loan |
Carriage Services and Federal Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carriage Services and Federal Home
The main advantage of trading using opposite Carriage Services and Federal Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carriage Services position performs unexpectedly, Federal Home 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 Federal Home will offset losses from the drop in Federal Home's long position.| Carriage Services vs. X FAB Silicon Foundries | Carriage Services vs. Taylor Morn Home | Carriage Services vs. Federal Home Loan | Carriage Services vs. MI Homes |
| Federal Home vs. Worthington Steel | Federal Home vs. Triumph Apparel | Federal Home vs. Algonquin Power Utilities | Federal Home vs. Apparel Manufacturing Associates |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |