Correlation Between Basic Energy and Owens Corning
Can any of the company-specific risk be diversified away by investing in both Basic Energy 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 Basic Energy and Owens Corning into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Basic Energy Services and Owens Corning, you can compare the effects of market volatilities on Basic Energy 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 Basic Energy with a short position of Owens Corning. Check out your portfolio center. Please also check ongoing floating volatility patterns of Basic Energy and Owens Corning.
Diversification Opportunities for Basic Energy and Owens Corning
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Basic and Owens is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Basic Energy Services and Owens Corning in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Owens Corning and Basic Energy 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 Basic Energy Services 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 Basic Energy i.e., Basic Energy and Owens Corning go up and down completely randomly.
Pair Corralation between Basic Energy and Owens Corning
If you would invest 16,961 in Owens Corning on February 9, 2024 and sell it today you would earn a total of 502.00 from holding Owens Corning or generate 2.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Basic Energy Services vs. Owens Corning
Performance |
| Timeline |
| Basic Energy Services |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Owens Corning |
Basic Energy and Owens Corning Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Basic Energy and Owens Corning
The main advantage of trading using opposite Basic Energy and Owens Corning positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Basic Energy 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.| Basic Energy vs. Empire Global Gaming | Basic Energy vs. Turning Point Brands | Basic Energy vs. NanoTech Gaming | Basic Energy vs. NetEase |
| Owens Corning vs. Quanex Building Products | Owens Corning vs. Armstrong World Industries | Owens Corning vs. Gibraltar Industries | Owens Corning vs. Apogee Enterprises |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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