Correlation Between Eagle Materials and Ibstock Plc
Can any of the company-specific risk be diversified away by investing in both Eagle Materials and Ibstock Plc 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 Eagle Materials and Ibstock Plc into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eagle Materials and Ibstock Plc, you can compare the effects of market volatilities on Eagle Materials and Ibstock Plc 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 Eagle Materials with a short position of Ibstock Plc. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eagle Materials and Ibstock Plc.
Diversification Opportunities for Eagle Materials and Ibstock Plc
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Eagle and Ibstock is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Eagle Materials and Ibstock Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ibstock Plc and Eagle Materials 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 Eagle Materials are associated (or correlated) with Ibstock Plc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ibstock Plc has no effect on the direction of Eagle Materials i.e., Eagle Materials and Ibstock Plc go up and down completely randomly.
Pair Corralation between Eagle Materials and Ibstock Plc
If you would invest 24,828 in Eagle Materials on October 26, 2024 and sell it today you would earn a total of 1,388 from holding Eagle Materials or generate 5.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 14.52% |
| Values | Daily Returns |
Eagle Materials vs. Ibstock Plc
Performance |
| Timeline |
| Eagle Materials |
| Ibstock Plc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Eagle Materials and Ibstock Plc Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eagle Materials and Ibstock Plc
The main advantage of trading using opposite Eagle Materials and Ibstock Plc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eagle Materials position performs unexpectedly, Ibstock Plc 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 Ibstock Plc will offset losses from the drop in Ibstock Plc's long position.| Eagle Materials vs. Vulcan Materials | Eagle Materials vs. CRH PLC ADR | Eagle Materials vs. Summit Materials | Eagle Materials vs. Cemex SAB de |
| Ibstock Plc vs. Xinyi Glass Holdings | Ibstock Plc vs. CEMATRIX | Ibstock Plc vs. Anhui Conch Cement | Ibstock Plc vs. Basanite |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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