Correlation Between Owens Corning and Gold Resource
Can any of the company-specific risk be diversified away by investing in both Owens Corning and Gold Resource 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 Owens Corning and Gold Resource into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Owens Corning and Gold Resource, you can compare the effects of market volatilities on Owens Corning and Gold Resource 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 Owens Corning with a short position of Gold Resource. Check out your portfolio center. Please also check ongoing floating volatility patterns of Owens Corning and Gold Resource.
Diversification Opportunities for Owens Corning and Gold Resource
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Owens and Gold is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Owens Corning and Gold Resource in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gold Resource and Owens Corning 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 Owens Corning are associated (or correlated) with Gold Resource. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gold Resource has no effect on the direction of Owens Corning i.e., Owens Corning and Gold Resource go up and down completely randomly.
Pair Corralation between Owens Corning and Gold Resource
Allowing for the 90-day total investment horizon Owens Corning is expected to generate 0.25 times more return on investment than Gold Resource. However, Owens Corning is 3.93 times less risky than Gold Resource. It trades about 0.06 of its potential returns per unit of risk. Gold Resource is currently generating about -0.05 per unit of risk. If you would invest 17,918 in Owens Corning on September 1, 2024 and sell it today you would earn a total of 2,644 from holding Owens Corning or generate 14.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Owens Corning vs. Gold Resource
Performance |
| Timeline |
| Owens Corning |
| Gold Resource |
Owens Corning and Gold Resource Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Owens Corning and Gold Resource
The main advantage of trading using opposite Owens Corning and Gold Resource positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Owens Corning position performs unexpectedly, Gold Resource 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 Gold Resource will offset losses from the drop in Gold Resource's long position.| Owens Corning vs. Trane Technologies plc | Owens Corning vs. Masco | Owens Corning vs. Quanex Building Products | Owens Corning vs. Jeld Wen Holding |
| Gold Resource vs. IAMGold | Gold Resource vs. Eldorado Gold Corp | Gold Resource vs. Coeur Mining | Gold Resource vs. Alamos Gold |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |