Correlation Between MSC Industrial and BlueLinx Holdings
Can any of the company-specific risk be diversified away by investing in both MSC Industrial and BlueLinx Holdings 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 MSC Industrial and BlueLinx Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MSC Industrial Direct and BlueLinx Holdings, you can compare the effects of market volatilities on MSC Industrial and BlueLinx Holdings 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 MSC Industrial with a short position of BlueLinx Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of MSC Industrial and BlueLinx Holdings.
Diversification Opportunities for MSC Industrial and BlueLinx Holdings
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between MSC and BlueLinx is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding MSC Industrial Direct and BlueLinx Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BlueLinx Holdings and MSC Industrial 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 MSC Industrial Direct are associated (or correlated) with BlueLinx Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BlueLinx Holdings has no effect on the direction of MSC Industrial i.e., MSC Industrial and BlueLinx Holdings go up and down completely randomly.
Pair Corralation between MSC Industrial and BlueLinx Holdings
Considering the 90-day investment horizon MSC Industrial Direct is expected to generate 0.49 times more return on investment than BlueLinx Holdings. However, MSC Industrial Direct is 2.04 times less risky than BlueLinx Holdings. It trades about 0.01 of its potential returns per unit of risk. BlueLinx Holdings is currently generating about -0.02 per unit of risk. If you would invest 8,597 in MSC Industrial Direct on July 20, 2025 and sell it today you would lose (7.00) from holding MSC Industrial Direct or give up 0.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MSC Industrial Direct vs. BlueLinx Holdings
Performance |
| Timeline |
| MSC Industrial Direct |
| BlueLinx Holdings |
MSC Industrial and BlueLinx Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MSC Industrial and BlueLinx Holdings
The main advantage of trading using opposite MSC Industrial and BlueLinx Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MSC Industrial position performs unexpectedly, BlueLinx Holdings 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 BlueLinx Holdings will offset losses from the drop in BlueLinx Holdings' long position.| MSC Industrial vs. SiteOne Landscape Supply | MSC Industrial vs. Ralliant Common | MSC Industrial vs. Enpro Industries | MSC Industrial vs. Maximus |
| BlueLinx Holdings vs. Quanex Building Products | BlueLinx Holdings vs. Compass Diversified Holdings | BlueLinx Holdings vs. Aspen Aerogels | BlueLinx Holdings vs. Cresud SACIF y |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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