Correlation Between Vulcan Materials and Temple Bar
Can any of the company-specific risk be diversified away by investing in both Vulcan Materials and Temple Bar 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 Vulcan Materials and Temple Bar into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vulcan Materials Co and Temple Bar Investment, you can compare the effects of market volatilities on Vulcan Materials and Temple Bar 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 Vulcan Materials with a short position of Temple Bar. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vulcan Materials and Temple Bar.
Diversification Opportunities for Vulcan Materials and Temple Bar
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Vulcan and Temple is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Vulcan Materials Co and Temple Bar Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Temple Bar Investment and Vulcan Materials 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 Vulcan Materials Co are associated (or correlated) with Temple Bar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Temple Bar Investment has no effect on the direction of Vulcan Materials i.e., Vulcan Materials and Temple Bar go up and down completely randomly.
Pair Corralation between Vulcan Materials and Temple Bar
Assuming the 90 days trading horizon Vulcan Materials Co is expected to generate 22.52 times more return on investment than Temple Bar. However, Vulcan Materials is 22.52 times more volatile than Temple Bar Investment. It trades about 0.12 of its potential returns per unit of risk. Temple Bar Investment is currently generating about 0.16 per unit of risk. If you would invest 11,967 in Vulcan Materials Co on August 19, 2025 and sell it today you would earn a total of 16,490 from holding Vulcan Materials Co or generate 137.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.46% |
| Values | Daily Returns |
Vulcan Materials Co vs. Temple Bar Investment
Performance |
| Timeline |
| Vulcan Materials |
| Temple Bar Investment |
Vulcan Materials and Temple Bar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vulcan Materials and Temple Bar
The main advantage of trading using opposite Vulcan Materials and Temple Bar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vulcan Materials position performs unexpectedly, Temple Bar 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 Temple Bar will offset losses from the drop in Temple Bar's long position.| Vulcan Materials vs. Retail Estates NV | Vulcan Materials vs. Supermarket Income REIT | Vulcan Materials vs. Aeorema Communications Plc | Vulcan Materials vs. Associated British Foods |
| Temple Bar vs. Ebro Foods | Temple Bar vs. One Media iP | Temple Bar vs. Catalyst Media Group | Temple Bar vs. Tyson Foods Cl |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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