Correlation Between Antelope Enterprise and Owens Corning
Can any of the company-specific risk be diversified away by investing in both Antelope Enterprise and Owens Corning 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 Antelope Enterprise and Owens Corning into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Antelope Enterprise Holdings and Owens Corning, you can compare the effects of market volatilities on Antelope Enterprise and Owens Corning 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 Antelope Enterprise with a short position of Owens Corning. Check out your portfolio center. Please also check ongoing floating volatility patterns of Antelope Enterprise and Owens Corning.
Diversification Opportunities for Antelope Enterprise and Owens Corning
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Antelope and Owens is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Antelope Enterprise Holdings and Owens Corning in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Owens Corning and Antelope Enterprise 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 Antelope Enterprise Holdings are associated (or correlated) with Owens Corning. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Owens Corning has no effect on the direction of Antelope Enterprise i.e., Antelope Enterprise and Owens Corning go up and down completely randomly.
Pair Corralation between Antelope Enterprise and Owens Corning
Given the investment horizon of 90 days Antelope Enterprise Holdings is expected to under-perform the Owens Corning. In addition to that, Antelope Enterprise is 4.4 times more volatile than Owens Corning. It trades about -0.16 of its total potential returns per unit of risk. Owens Corning is currently generating about 0.35 per unit of volatility. If you would invest 18,096 in Owens Corning on August 30, 2024 and sell it today you would earn a total of 2,414 from holding Owens Corning or generate 13.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Antelope Enterprise Holdings vs. Owens Corning
Performance |
| Timeline |
| Antelope Enterprise |
| Owens Corning |
Antelope Enterprise and Owens Corning Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Antelope Enterprise and Owens Corning
The main advantage of trading using opposite Antelope Enterprise and Owens Corning positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Antelope Enterprise position performs unexpectedly, Owens Corning 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 Owens Corning will offset losses from the drop in Owens Corning's long position.| Antelope Enterprise vs. Azek Company | Antelope Enterprise vs. AAON Inc | Antelope Enterprise vs. GMS Inc | Antelope Enterprise vs. Intelligent Living Application |
| Owens Corning vs. Trane Technologies plc | Owens Corning vs. Masco | Owens Corning vs. Quanex Building Products | Owens Corning vs. Jeld Wen Holding |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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