Correlation Between OFFICE DEPOT and Beazer Homes
Can any of the company-specific risk be diversified away by investing in both OFFICE DEPOT and Beazer Homes 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 OFFICE DEPOT and Beazer Homes into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OFFICE DEPOT and Beazer Homes USA, you can compare the effects of market volatilities on OFFICE DEPOT and Beazer Homes 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 OFFICE DEPOT with a short position of Beazer Homes. Check out your portfolio center. Please also check ongoing floating volatility patterns of OFFICE DEPOT and Beazer Homes.
Diversification Opportunities for OFFICE DEPOT and Beazer Homes
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between OFFICE and Beazer is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding OFFICE DEPOT and Beazer Homes USA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beazer Homes USA and OFFICE DEPOT 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 OFFICE DEPOT are associated (or correlated) with Beazer Homes. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beazer Homes USA has no effect on the direction of OFFICE DEPOT i.e., OFFICE DEPOT and Beazer Homes go up and down completely randomly.
Pair Corralation between OFFICE DEPOT and Beazer Homes
If you would invest 2,660 in Beazer Homes USA on October 25, 2024 and sell it today you would earn a total of 40.00 from holding Beazer Homes USA or generate 1.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
OFFICE DEPOT vs. Beazer Homes USA
Performance |
| Timeline |
| OFFICE DEPOT |
| Beazer Homes USA |
OFFICE DEPOT and Beazer Homes Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OFFICE DEPOT and Beazer Homes
The main advantage of trading using opposite OFFICE DEPOT and Beazer Homes positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OFFICE DEPOT position performs unexpectedly, Beazer Homes 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 Beazer Homes will offset losses from the drop in Beazer Homes' long position.| OFFICE DEPOT vs. SANOK RUBBER ZY | OFFICE DEPOT vs. Universal Health Realty | OFFICE DEPOT vs. Martin Marietta Materials | OFFICE DEPOT vs. Phibro Animal Health |
| Beazer Homes vs. KENEDIX OFFICE INV | Beazer Homes vs. Corporate Office Properties | Beazer Homes vs. Playtech plc | Beazer Homes vs. OFFICE DEPOT |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |