Correlation Between Beazer Homes and Varex Imaging
Can any of the company-specific risk be diversified away by investing in both Beazer Homes and Varex Imaging 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 Beazer Homes and Varex Imaging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Beazer Homes USA and Varex Imaging Corp, you can compare the effects of market volatilities on Beazer Homes and Varex Imaging 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 Beazer Homes with a short position of Varex Imaging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beazer Homes and Varex Imaging.
Diversification Opportunities for Beazer Homes and Varex Imaging
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Beazer and Varex is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Beazer Homes USA and Varex Imaging Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Varex Imaging Corp and Beazer Homes 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 Beazer Homes USA are associated (or correlated) with Varex Imaging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Varex Imaging Corp has no effect on the direction of Beazer Homes i.e., Beazer Homes and Varex Imaging go up and down completely randomly.
Pair Corralation between Beazer Homes and Varex Imaging
Considering the 90-day investment horizon Beazer Homes USA is expected to under-perform the Varex Imaging. But the stock apears to be less risky and, when comparing its historical volatility, Beazer Homes USA is 1.12 times less risky than Varex Imaging. The stock trades about -0.08 of its potential returns per unit of risk. The Varex Imaging Corp is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 1,148 in Varex Imaging Corp on September 13, 2025 and sell it today you would earn a total of 22.00 from holding Varex Imaging Corp or generate 1.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beazer Homes USA vs. Varex Imaging Corp
Performance |
| Timeline |
| Beazer Homes USA |
| Varex Imaging Corp |
Beazer Homes and Varex Imaging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beazer Homes and Varex Imaging
The main advantage of trading using opposite Beazer Homes and Varex Imaging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beazer Homes position performs unexpectedly, Varex Imaging 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 Varex Imaging will offset losses from the drop in Varex Imaging's long position.| Beazer Homes vs. Hovnanian Enterprises | Beazer Homes vs. Legacy Housing Corp | Beazer Homes vs. LGI Homes | Beazer Homes vs. Cars Inc |
| Varex Imaging vs. Standard Biotools | Varex Imaging vs. Avanos Medical | Varex Imaging vs. Cytek Biosciences | Varex Imaging vs. CeriBell, |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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