Correlation Between Carriage Services and Liquidity Services
Can any of the company-specific risk be diversified away by investing in both Carriage Services and Liquidity Services 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 Liquidity Services into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Carriage Services and Liquidity Services, you can compare the effects of market volatilities on Carriage Services and Liquidity Services 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 Liquidity Services. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carriage Services and Liquidity Services.
Diversification Opportunities for Carriage Services and Liquidity Services
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Carriage and Liquidity is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Carriage Services and Liquidity Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Liquidity Services 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 Liquidity Services. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Liquidity Services has no effect on the direction of Carriage Services i.e., Carriage Services and Liquidity Services go up and down completely randomly.
Pair Corralation between Carriage Services and Liquidity Services
Considering the 90-day investment horizon Carriage Services is expected to under-perform the Liquidity Services. But the stock apears to be less risky and, when comparing its historical volatility, Carriage Services is 2.14 times less risky than Liquidity Services. The stock trades about -0.04 of its potential returns per unit of risk. The Liquidity Services is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 2,319 in Liquidity Services on October 10, 2025 and sell it today you would earn a total of 775.00 from holding Liquidity Services or generate 33.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Carriage Services vs. Liquidity Services
Performance |
| Timeline |
| Carriage Services |
| Liquidity Services |
Carriage Services and Liquidity Services Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carriage Services and Liquidity Services
The main advantage of trading using opposite Carriage Services and Liquidity Services positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carriage Services position performs unexpectedly, Liquidity Services 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 Liquidity Services will offset losses from the drop in Liquidity Services' 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 |
| Liquidity Services vs. Build A Bear Workshop | Liquidity Services vs. Olaplex Holdings | Liquidity Services vs. Jumia Technologies AG | Liquidity Services vs. D MARKET Electronic 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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