Correlation Between Masonite International and Gibraltar Industries
Can any of the company-specific risk be diversified away by investing in both Masonite International and Gibraltar Industries 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 Masonite International and Gibraltar Industries into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Masonite International Corp and Gibraltar Industries, you can compare the effects of market volatilities on Masonite International and Gibraltar Industries 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 Masonite International with a short position of Gibraltar Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Masonite International and Gibraltar Industries.
Diversification Opportunities for Masonite International and Gibraltar Industries
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Masonite and Gibraltar is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Masonite International Corp and Gibraltar Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gibraltar Industries and Masonite International 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 Masonite International Corp are associated (or correlated) with Gibraltar Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gibraltar Industries has no effect on the direction of Masonite International i.e., Masonite International and Gibraltar Industries go up and down completely randomly.
Pair Corralation between Masonite International and Gibraltar Industries
If you would invest 5,908 in Gibraltar Industries on November 5, 2024 and sell it today you would earn a total of 229.00 from holding Gibraltar Industries or generate 3.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 5.26% |
| Values | Daily Returns |
Masonite International Corp vs. Gibraltar Industries
Performance |
| Timeline |
| Masonite International |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Gibraltar Industries |
Masonite International and Gibraltar Industries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Masonite International and Gibraltar Industries
The main advantage of trading using opposite Masonite International and Gibraltar Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Masonite International position performs unexpectedly, Gibraltar Industries 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 Gibraltar Industries will offset losses from the drop in Gibraltar Industries' long position.| Masonite International vs. Jeld Wen Holding | Masonite International vs. Installed Building Products | Masonite International vs. Armstrong World Industries | Masonite International vs. GMS Inc |
| Gibraltar Industries vs. Quanex Building Products | Gibraltar Industries vs. Jeld Wen Holding | Gibraltar Industries vs. Perma Pipe International Holdings | Gibraltar Industries vs. Interface |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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