Correlation Between Owens Corning and EXCO Resources
Can any of the company-specific risk be diversified away by investing in both Owens Corning and EXCO Resources 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 EXCO Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Owens Corning and EXCO Resources, you can compare the effects of market volatilities on Owens Corning and EXCO Resources 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 EXCO Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Owens Corning and EXCO Resources.
Diversification Opportunities for Owens Corning and EXCO Resources
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Owens and EXCO is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Owens Corning and EXCO Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EXCO Resources 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 EXCO Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EXCO Resources has no effect on the direction of Owens Corning i.e., Owens Corning and EXCO Resources go up and down completely randomly.
Pair Corralation between Owens Corning and EXCO Resources
If you would invest 7,479 in Owens Corning on January 25, 2024 and sell it today you would earn a total of 9,043 from holding Owens Corning or generate 120.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Owens Corning vs. EXCO Resources
Performance |
| Timeline |
| Owens Corning |
| EXCO Resources |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Owens Corning and EXCO Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Owens Corning and EXCO Resources
The main advantage of trading using opposite Owens Corning and EXCO Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Owens Corning position performs unexpectedly, EXCO Resources 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 EXCO Resources will offset losses from the drop in EXCO Resources' long position.| Owens Corning vs. Gibraltar Industries | Owens Corning vs. Quanex Building Products | Owens Corning vs. Perma Pipe International Holdings | Owens Corning vs. Interface |
| EXCO Resources vs. JBG SMITH Properties | EXCO Resources vs. Avarone Metals | EXCO Resources vs. Eldorado Gold Corp | EXCO Resources vs. Uranium Energy Corp |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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