Correlation Between Carriage Services and OneSpaWorld Holdings
Can any of the company-specific risk be diversified away by investing in both Carriage Services and OneSpaWorld Holdings 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 OneSpaWorld Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Carriage Services and OneSpaWorld Holdings, you can compare the effects of market volatilities on Carriage Services and OneSpaWorld Holdings 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 OneSpaWorld Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carriage Services and OneSpaWorld Holdings.
Diversification Opportunities for Carriage Services and OneSpaWorld Holdings
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Carriage and OneSpaWorld is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Carriage Services and OneSpaWorld Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OneSpaWorld Holdings 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 OneSpaWorld Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OneSpaWorld Holdings has no effect on the direction of Carriage Services i.e., Carriage Services and OneSpaWorld Holdings go up and down completely randomly.
Pair Corralation between Carriage Services and OneSpaWorld Holdings
Considering the 90-day investment horizon Carriage Services is expected to generate 0.97 times more return on investment than OneSpaWorld Holdings. However, Carriage Services is 1.03 times less risky than OneSpaWorld Holdings. It trades about -0.02 of its potential returns per unit of risk. OneSpaWorld Holdings is currently generating about -0.05 per unit of risk. If you would invest 4,568 in Carriage Services on July 20, 2025 and sell it today you would lose (122.00) from holding Carriage Services or give up 2.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Carriage Services vs. OneSpaWorld Holdings
Performance |
| Timeline |
| Carriage Services |
| OneSpaWorld Holdings |
Carriage Services and OneSpaWorld Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carriage Services and OneSpaWorld Holdings
The main advantage of trading using opposite Carriage Services and OneSpaWorld Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carriage Services position performs unexpectedly, OneSpaWorld Holdings 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 OneSpaWorld Holdings will offset losses from the drop in OneSpaWorld Holdings' long position.| Carriage Services vs. Ethan Allen Interiors | Carriage Services vs. Douglas Dynamics | Carriage Services vs. Beazer Homes USA | Carriage Services vs. Sabre Corpo |
| OneSpaWorld Holdings vs. Six Flags Entertainment | OneSpaWorld Holdings vs. Wolverine World Wide | OneSpaWorld Holdings vs. Under Armour A | OneSpaWorld Holdings vs. LCI Industries |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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