Correlation Between Intelligent Living and Owens Corning
Can any of the company-specific risk be diversified away by investing in both Intelligent Living 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 Intelligent Living and Owens Corning into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intelligent Living Application and Owens Corning, you can compare the effects of market volatilities on Intelligent Living 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 Intelligent Living with a short position of Owens Corning. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intelligent Living and Owens Corning.
Diversification Opportunities for Intelligent Living and Owens Corning
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Intelligent and Owens is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Intelligent Living Application and Owens Corning in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Owens Corning and Intelligent Living 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 Intelligent Living Application 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 Intelligent Living i.e., Intelligent Living and Owens Corning go up and down completely randomly.
Pair Corralation between Intelligent Living and Owens Corning
Given the investment horizon of 90 days Intelligent Living is expected to generate 1.49 times less return on investment than Owens Corning. In addition to that, Intelligent Living is 3.51 times more volatile than Owens Corning. It trades about 0.02 of its total potential returns per unit of risk. Owens Corning is currently generating about 0.08 per unit of volatility. If you would invest 9,471 in Owens Corning on November 19, 2024 and sell it today you would earn a total of 8,467 from holding Owens Corning or generate 89.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intelligent Living Application vs. Owens Corning
Performance |
| Timeline |
| Intelligent Living |
| Owens Corning |
Intelligent Living and Owens Corning Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intelligent Living and Owens Corning
The main advantage of trading using opposite Intelligent Living and Owens Corning positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intelligent Living 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.| Intelligent Living vs. Azek Company | Intelligent Living vs. Atlas Engineered Products | Intelligent Living vs. Antelope Enterprise Holdings | Intelligent Living vs. Latham Group |
| 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Stocks Directory Find actively traded stocks across global markets |