Correlation Between CRH PLC and Moonpig Group
Can any of the company-specific risk be diversified away by investing in both CRH PLC and Moonpig Group 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 CRH PLC and Moonpig Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CRH PLC and Moonpig Group PLC, you can compare the effects of market volatilities on CRH PLC and Moonpig Group 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 CRH PLC with a short position of Moonpig Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of CRH PLC and Moonpig Group.
Diversification Opportunities for CRH PLC and Moonpig Group
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between CRH and Moonpig is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding CRH PLC and Moonpig Group PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Moonpig Group PLC and CRH PLC 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 CRH PLC are associated (or correlated) with Moonpig Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Moonpig Group PLC has no effect on the direction of CRH PLC i.e., CRH PLC and Moonpig Group go up and down completely randomly.
Pair Corralation between CRH PLC and Moonpig Group
Assuming the 90 days trading horizon CRH PLC is expected to generate 0.88 times more return on investment than Moonpig Group. However, CRH PLC is 1.14 times less risky than Moonpig Group. It trades about 0.04 of its potential returns per unit of risk. Moonpig Group PLC is currently generating about 0.03 per unit of risk. If you would invest 831,029 in CRH PLC on August 14, 2025 and sell it today you would earn a total of 27,371 from holding CRH PLC or generate 3.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CRH PLC vs. Moonpig Group PLC
Performance |
| Timeline |
| CRH PLC |
| Moonpig Group PLC |
CRH PLC and Moonpig Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CRH PLC and Moonpig Group
The main advantage of trading using opposite CRH PLC and Moonpig Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CRH PLC position performs unexpectedly, Moonpig Group 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 Moonpig Group will offset losses from the drop in Moonpig Group's long position.| CRH PLC vs. Pets at Home | CRH PLC vs. Cairn Homes PLC | CRH PLC vs. Coeur Mining | CRH PLC vs. Silvercorp Metals |
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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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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