Correlation Between Powell Industries and OneConstruction Group
Can any of the company-specific risk be diversified away by investing in both Powell Industries and OneConstruction 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 Powell Industries and OneConstruction Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Powell Industries and OneConstruction Group Limited, you can compare the effects of market volatilities on Powell Industries and OneConstruction 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 Powell Industries with a short position of OneConstruction Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Powell Industries and OneConstruction Group.
Diversification Opportunities for Powell Industries and OneConstruction Group
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Powell and OneConstruction is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Powell Industries and OneConstruction Group Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OneConstruction Group and Powell Industries 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 Powell Industries are associated (or correlated) with OneConstruction Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OneConstruction Group has no effect on the direction of Powell Industries i.e., Powell Industries and OneConstruction Group go up and down completely randomly.
Pair Corralation between Powell Industries and OneConstruction Group
Given the investment horizon of 90 days Powell Industries is expected to generate 0.32 times more return on investment than OneConstruction Group. However, Powell Industries is 3.12 times less risky than OneConstruction Group. It trades about 0.12 of its potential returns per unit of risk. OneConstruction Group Limited is currently generating about -0.23 per unit of risk. If you would invest 27,217 in Powell Industries on September 7, 2025 and sell it today you would earn a total of 6,996 from holding Powell Industries or generate 25.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Powell Industries vs. OneConstruction Group Limited
Performance |
| Timeline |
| Powell Industries |
| OneConstruction Group |
Powell Industries and OneConstruction Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Powell Industries and OneConstruction Group
The main advantage of trading using opposite Powell Industries and OneConstruction Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Powell Industries position performs unexpectedly, OneConstruction 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 OneConstruction Group will offset losses from the drop in OneConstruction Group's long position.| Powell Industries vs. Singapore Telecommunications Limited | Powell Industries vs. InterContinental Hotels Group | Powell Industries vs. Bank of Communications | Powell Industries vs. Candlewood Hotel |
| OneConstruction Group vs. Jacobs Solutions | OneConstruction Group vs. Jsti Group | OneConstruction Group vs. Guangdong No2 Hydropower | OneConstruction Group vs. Dycom Industries |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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