Installed Building Correlations

IBP Stock

USD 211.24 2.71 1.30%

The current 90-days correlation between Installed Building and Century Communities is 0.74 (i.e., Poor diversification). The correlation of Installed Building 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.

Installed Building Correlation With Market

Weak diversification

The correlation between Installed Building Products and DJI is 0.35 (i.e., Weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Installed Building Products and DJI in the same portfolio, assuming nothing else is changed.

Check out Risk vs Return Analysis to better understand how to build diversified portfolios, which includes a position in Installed Building Products. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in bureau of labor statistics.

Moving together with Installed Stock

0.84	HAS	Hasbro Inc	Pair Corr
0.81	MHO	MI Homes	Pair Corr
0.75	LE	Lands End	Pair Corr
0.78	FNKO	Funko Inc	Pair Corr
0.69	EDU	New Oriental Education	Pair Corr

Moving against Installed Stock

0.37	EEIQ	Elite Education Group	Pair Corr
0.32	FORD	Forward Industries	Pair Corr
0.59	UTI	Universal Technical Upward Rally	Pair Corr
0.55	LRN	Stride Inc	Pair Corr
0.51	BTCTW	BTC Digital	Pair Corr
0.36	NWL	Newell Brands	Pair Corr
0.34	KMX	CarMax Inc	Pair Corr

Related Correlations Analysis

	CCS	MHO	TMHC	TPH	BZH	LGIH	MTH	SKY	LEGH	CVCO
CCS		0.72	-0.05	0.88	0.35	0.84	0.96	0.08	0.71	-0.37	CCS
MHO	0.72		0.53	0.83	0.74	0.89	0.82	0.57	0.72	0.26	MHO
TMHC	-0.05	0.53		0.16	0.75	0.4	0.15	0.68	0.35	0.8	TMHC
TPH	0.88	0.83	0.16		0.54	0.84	0.91	0.44	0.74	-0.05	TPH
BZH	0.35	0.74	0.75	0.54		0.71	0.51	0.76	0.65	0.63	BZH
LGIH	0.84	0.89	0.4	0.84	0.71		0.91	0.4	0.84	0.11	LGIH
MTH	0.96	0.82	0.15	0.91	0.51	0.91		0.23	0.81	-0.16	MTH
SKY	0.08	0.57	0.68	0.44	0.76	0.4	0.23		0.34	0.78	SKY
LEGH	0.71	0.72	0.35	0.74	0.65	0.84	0.81	0.34		0.15	LEGH
CVCO	-0.37	0.26	0.8	-0.05	0.63	0.11	-0.16	0.78	0.15		CVCO
	CCS	MHO	TMHC	TPH	BZH	LGIH	MTH	SKY	LEGH	CVCO

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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

MTH	+ 0.96	CCS
MTH	+ 0.91	TPH
MTH	+ 0.91	LGIH
LGIH	+ 0.89	MHO
TPH	+ 0.88	CCS
LGIH	+ 0.84	CCS

High negative correlations

CVCO	- 0.37	CCS
CVCO	- 0.16	MTH
CVCO	- 0.05	TPH
TMHC	- 0.05	CCS

Risk-Adjusted Indicators

There is a big difference between Installed Stock performing well and Installed Building 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 Installed Building'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 Deviation	Jensen Alpha	Sortino Ratio	Treynor Ratio	Semi Deviation	Expected Shortfall	Potential Upside	Value @Risk	Maximum Drawdown
CCS	1.64	(0.16)	0.00	(0.11)	0.00	0.00	3.75	(3.86)	13.05
MHO	1.69	(0.01)	0.00	0.08	2.38	(1.64)	3.78	(4.24)	11.78
TMHC	1.41	0.09	0.04	0.22	1.67	(1.57)	3.10	(2.82)	9.89
TPH	1.36	(0.09)	(0.05)	0.00	1.76	(1.51)	2.86	(3.19)	10.14
BZH	1.75	0.06	0.03	0.13	2.10	(1.87)	4.20	(3.93)	12.19
LGIH	1.69	(0.09)	(0.04)	0.00	1.98	(2.08)	4.12	(3.56)	11.93
MTH	1.58	(0.12)	0.00	(0.04)	0.00	0.00	4.09	(4.82)	11.87
SKY	1.49	0.07	0.05	0.14	1.91	(1.55)	3.69	(2.86)	11.17
LEGH	1.52	(0.16)	0.00	(0.01)	0.00	0.00	3.93	(2.95)	9.53
CVCO	1.52	0.22	0.15	0.25	1.37	(1.83)	3.73	(2.91)	11.92

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