Correlation Between NACCO Industries and Libbey
Can any of the company-specific risk be diversified away by investing in both NACCO Industries and Libbey 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 NACCO Industries and Libbey into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NACCO Industries and Libbey Inc, you can compare the effects of market volatilities on NACCO Industries and Libbey 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 NACCO Industries with a short position of Libbey. Check out your portfolio center. Please also check ongoing floating volatility patterns of NACCO Industries and Libbey.
Diversification Opportunities for NACCO Industries and Libbey
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between NACCO and Libbey is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding NACCO Industries and Libbey Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Libbey Inc and NACCO 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 NACCO Industries are associated (or correlated) with Libbey. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Libbey Inc has no effect on the direction of NACCO Industries i.e., NACCO Industries and Libbey go up and down completely randomly.
Pair Corralation between NACCO Industries and Libbey
If you would invest 2,940 in NACCO Industries on February 10, 2024 and sell it today you would earn a total of 247.00 from holding NACCO Industries or generate 8.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
NACCO Industries vs. Libbey Inc
Performance |
| Timeline |
| NACCO Industries |
| Libbey Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
NACCO Industries and Libbey Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NACCO Industries and Libbey
The main advantage of trading using opposite NACCO Industries and Libbey positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NACCO Industries position performs unexpectedly, Libbey 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 Libbey will offset losses from the drop in Libbey's long position.| NACCO Industries vs. Alliance Resource Partners | NACCO Industries vs. Hallador Energy | NACCO Industries vs. Consol Energy | NACCO Industries vs. Indo Tambangraya Megah |
| Libbey vs. Amgen Inc | Libbey vs. Yatra Online | Libbey vs. Cardinal Health | Libbey vs. Xtant Medical Holdings |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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