Builders FirstSource Correlations

BLDR Stock  USD 131.12  5.51  4.39%   
The current 90-days correlation between Builders FirstSource and Azek Company is 0.57 (i.e., Very weak diversification). The correlation of Builders FirstSource is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak. If the correlation is 0, the equities are not correlated; they are entirely random.

Builders FirstSource Correlation With Market

Poor diversification

The correlation between Builders FirstSource and DJI is 0.7 (i.e., Poor diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Builders FirstSource and DJI in the same portfolio, assuming nothing else is changed.
  
Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Builders FirstSource. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in unemployment.
To learn how to invest in Builders Stock, please use our How to Invest in Builders FirstSource guide.

Moving together with Builders Stock

  0.63NX Quanex Building ProductsPairCorr
  0.95OC Owens CorningPairCorr
  0.67TT Trane Technologies plcPairCorr
  0.93FBIN Fortune Brands InnovPairCorr
  0.82CSL Carlisle CompaniesPairCorr
  0.85GMS GMS IncPairCorr
  0.66LII Lennox InternationalPairCorr
  0.83LMB Limbach HoldingsPairCorr
  0.95LPX Louisiana PacificPairCorr
  0.91MAS MascoPairCorr
  0.88WMS Advanced Drainage SystemsPairCorr
  0.78ILAG Intelligent LivingPairCorr
  0.9JELD Jeld Wen HoldingPairCorr
  0.77PPIH Perma Pipe InternatiPairCorr
  0.81AAON AAON IncPairCorr
  0.75ASPN Aspen AerogelsPairCorr
  0.73AZEK Azek CompanyPairCorr
  0.81SPXC SPX CorpPairCorr
  0.92TREX Trex CompanyPairCorr
  0.82CSTE CaesarstonePairCorr
  0.93J Jacobs SolutionsPairCorr
  0.69R Ryder SystemPairCorr
  0.73AP Ampco PittsburghPairCorr

Related Correlations Analysis

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Correlation Matchups

Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.
High positive correlations   
OCFBIN
OCWMS
MASWMS
FBINWMS
FBINTT
OCMAS
  
High negative correlations   
ROCKAZEK
OCROCK
ROCKAPOG
TTROCK
FBINROCK
WMSROCK

Risk-Adjusted Indicators

There is a big difference between Builders Stock performing well and Builders FirstSource Company doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze Builders FirstSource's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.
Mean DeviationJensen AlphaSortino RatioTreynor RatioSemi DeviationExpected ShortfallPotential UpsideValue @RiskMaximum Drawdown
APOG  1.76 (0.53) 0.00 (0.48) 0.00 
 3.38 
 19.92 
AZEK  1.91  0.13  0.03  0.01  2.18 
 4.06 
 18.85 
LII  1.68 (0.04) 0.00 (0.07) 0.00 
 2.93 
 11.28 
ROCK  1.64  0.04  0.00 (0.01) 0.00 
 3.40 
 16.83 
WMS  1.48 (0.02) 0.00 (0.06) 0.00 
 3.37 
 8.52 
TT  1.35 (0.06) 0.00 (0.10) 0.00 
 2.11 
 10.34 
FBIN  1.27 (0.13) 0.00 (0.16) 0.00 
 2.49 
 7.58 
JCI  1.45  0.12  0.06  0.04  1.70 
 2.53 
 15.29 
MAS  1.22  0.00  0.00 (0.04) 0.00 
 1.98 
 6.69 
OC  1.55 (0.14) 0.00 (0.12) 0.00 
 3.01 
 7.74