Correlation Between CSW Industrials and Carrier Global
Can any of the company-specific risk be diversified away by investing in both CSW Industrials and Carrier Global 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 CSW Industrials and Carrier Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CSW Industrials and Carrier Global Corp, you can compare the effects of market volatilities on CSW Industrials and Carrier Global 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 CSW Industrials with a short position of Carrier Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of CSW Industrials and Carrier Global.
Diversification Opportunities for CSW Industrials and Carrier Global
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between CSW and Carrier is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding CSW Industrials and Carrier Global Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Carrier Global Corp and CSW Industrials 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 CSW Industrials are associated (or correlated) with Carrier Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Carrier Global Corp has no effect on the direction of CSW Industrials i.e., CSW Industrials and Carrier Global go up and down completely randomly.
Pair Corralation between CSW Industrials and Carrier Global
Considering the 90-day investment horizon CSW Industrials is expected to generate 1.21 times more return on investment than Carrier Global. However, CSW Industrials is 1.21 times more volatile than Carrier Global Corp. It trades about 0.23 of its potential returns per unit of risk. Carrier Global Corp is currently generating about 0.0 per unit of risk. If you would invest 23,561 in CSW Industrials on October 12, 2025 and sell it today you would earn a total of 8,393 from holding CSW Industrials or generate 35.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CSW Industrials vs. Carrier Global Corp
Performance |
| Timeline |
| CSW Industrials |
| Carrier Global Corp |
CSW Industrials and Carrier Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CSW Industrials and Carrier Global
The main advantage of trading using opposite CSW Industrials and Carrier Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CSW Industrials position performs unexpectedly, Carrier Global 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 Carrier Global will offset losses from the drop in Carrier Global's long position.| CSW Industrials vs. Franklin Electric Co | CSW Industrials vs. Mueller Water Products | CSW Industrials vs. Crane NXT Co | CSW Industrials vs. Kadant Inc |
| Carrier Global vs. Ferguson Plc | Carrier Global vs. Roper Technologies | Carrier Global vs. Fastenal Company | Carrier Global vs. Ametek Inc |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| AI Portfolio Prophet Use AI to generate optimal portfolios and find profitable investment opportunities |