Correlation Between Quanex Building and Aspen Aerogels
Can any of the company-specific risk be diversified away by investing in both Quanex Building and Aspen Aerogels 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 Quanex Building and Aspen Aerogels into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Quanex Building Products and Aspen Aerogels, you can compare the effects of market volatilities on Quanex Building and Aspen Aerogels 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 Quanex Building with a short position of Aspen Aerogels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Quanex Building and Aspen Aerogels.
Diversification Opportunities for Quanex Building and Aspen Aerogels
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Quanex and Aspen is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Quanex Building Products and Aspen Aerogels in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aspen Aerogels and Quanex Building 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 Quanex Building Products are associated (or correlated) with Aspen Aerogels. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aspen Aerogels has no effect on the direction of Quanex Building i.e., Quanex Building and Aspen Aerogels go up and down completely randomly.
Pair Corralation between Quanex Building and Aspen Aerogels
Allowing for the 90-day total investment horizon Quanex Building Products is expected to generate 0.47 times more return on investment than Aspen Aerogels. However, Quanex Building Products is 2.14 times less risky than Aspen Aerogels. It trades about -0.2 of its potential returns per unit of risk. Aspen Aerogels is currently generating about -0.12 per unit of risk. If you would invest 2,088 in Quanex Building Products on August 15, 2025 and sell it today you would lose (770.00) from holding Quanex Building Products or give up 36.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Quanex Building Products vs. Aspen Aerogels
Performance |
| Timeline |
| Quanex Building Products |
| Aspen Aerogels |
Quanex Building and Aspen Aerogels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Quanex Building and Aspen Aerogels
The main advantage of trading using opposite Quanex Building and Aspen Aerogels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Quanex Building position performs unexpectedly, Aspen Aerogels 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 Aspen Aerogels will offset losses from the drop in Aspen Aerogels' long position.| Quanex Building vs. Aspen Aerogels | Quanex Building vs. FTAI Infrastructure | Quanex Building vs. Apogee Enterprises | Quanex Building vs. BlueLinx Holdings |
| Aspen Aerogels vs. Quanex Building Products | Aspen Aerogels vs. FTAI Infrastructure | Aspen Aerogels vs. BlueLinx Holdings | Aspen Aerogels vs. Apogee Enterprises |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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