Correlation Between Beacon Roofing and 693304AT4
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By analyzing existing cross correlation between Beacon Roofing Supply and PECO ENERGY 315, you can compare the effects of market volatilities on Beacon Roofing and 693304AT4 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 Beacon Roofing with a short position of 693304AT4. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beacon Roofing and 693304AT4.
Diversification Opportunities for Beacon Roofing and 693304AT4
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Beacon and 693304AT4 is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Beacon Roofing Supply and PECO ENERGY 315 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PECO ENERGY 315 and Beacon Roofing 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 Beacon Roofing Supply are associated (or correlated) with 693304AT4. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PECO ENERGY 315 has no effect on the direction of Beacon Roofing i.e., Beacon Roofing and 693304AT4 go up and down completely randomly.
Pair Corralation between Beacon Roofing and 693304AT4
Given the investment horizon of 90 days Beacon Roofing Supply is expected to under-perform the 693304AT4. In addition to that, Beacon Roofing is 1.83 times more volatile than PECO ENERGY 315. It trades about -0.3 of its total potential returns per unit of risk. PECO ENERGY 315 is currently generating about -0.22 per unit of volatility. If you would invest 9,887 in PECO ENERGY 315 on October 9, 2024 and sell it today you would lose (257.00) from holding PECO ENERGY 315 or give up 2.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 89.47% |
| Values | Daily Returns |
Beacon Roofing Supply vs. PECO ENERGY 315
Performance |
| Timeline |
| Beacon Roofing Supply |
| PECO ENERGY 315 |
Beacon Roofing and 693304AT4 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beacon Roofing and 693304AT4
The main advantage of trading using opposite Beacon Roofing and 693304AT4 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beacon Roofing position performs unexpectedly, 693304AT4 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 693304AT4 will offset losses from the drop in 693304AT4's long position.| Beacon Roofing vs. Quanex Building Products | Beacon Roofing vs. Gibraltar Industries | Beacon Roofing vs. Armstrong World Industries | Beacon Roofing vs. Janus International Group |
| 693304AT4 vs. Siriuspoint | 693304AT4 vs. Chester Mining | 693304AT4 vs. HNI Corp | 693304AT4 vs. Exchange Bankshares |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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