Correlation Between PPG Industries and TOR Minerals
Can any of the company-specific risk be diversified away by investing in both PPG Industries and TOR Minerals 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 PPG Industries and TOR Minerals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PPG Industries and TOR Minerals International, you can compare the effects of market volatilities on PPG Industries and TOR Minerals 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 PPG Industries with a short position of TOR Minerals. Check out your portfolio center. Please also check ongoing floating volatility patterns of PPG Industries and TOR Minerals.
Diversification Opportunities for PPG Industries and TOR Minerals
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between PPG and TOR is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding PPG Industries and TOR Minerals International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TOR Minerals Interna and PPG Industries 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 PPG Industries are associated (or correlated) with TOR Minerals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TOR Minerals Interna has no effect on the direction of PPG Industries i.e., PPG Industries and TOR Minerals go up and down completely randomly.
Pair Corralation between PPG Industries and TOR Minerals
If you would invest 270.00 in TOR Minerals International on August 29, 2024 and sell it today you would earn a total of 0.00 from holding TOR Minerals International or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.35% |
| Values | Daily Returns |
PPG Industries vs. TOR Minerals International
Performance |
| Timeline |
| PPG Industries |
| TOR Minerals Interna |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
PPG Industries and TOR Minerals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PPG Industries and TOR Minerals
The main advantage of trading using opposite PPG Industries and TOR Minerals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PPG Industries position performs unexpectedly, TOR Minerals 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 TOR Minerals will offset losses from the drop in TOR Minerals' long position.| PPG Industries vs. Air Products and | PPG Industries vs. Linde plc Ordinary | PPG Industries vs. Ecolab Inc | PPG Industries vs. LyondellBasell Industries NV |
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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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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