Correlation Between Teck Resources and PPG Industries
Can any of the company-specific risk be diversified away by investing in both Teck Resources and PPG Industries 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 Teck Resources and PPG Industries into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Teck Resources Ltd and PPG Industries, you can compare the effects of market volatilities on Teck Resources and PPG Industries 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 Teck Resources with a short position of PPG Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Teck Resources and PPG Industries.
Diversification Opportunities for Teck Resources and PPG Industries
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Teck and PPG is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Teck Resources Ltd and PPG Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PPG Industries and Teck Resources 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 Teck Resources Ltd are associated (or correlated) with PPG Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PPG Industries has no effect on the direction of Teck Resources i.e., Teck Resources and PPG Industries go up and down completely randomly.
Pair Corralation between Teck Resources and PPG Industries
Given the investment horizon of 90 days Teck Resources Ltd is expected to generate 1.97 times more return on investment than PPG Industries. However, Teck Resources is 1.97 times more volatile than PPG Industries. It trades about 0.17 of its potential returns per unit of risk. PPG Industries is currently generating about -0.17 per unit of risk. If you would invest 3,120 in Teck Resources Ltd on August 20, 2025 and sell it today you would earn a total of 991.00 from holding Teck Resources Ltd or generate 31.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 98.44% |
| Values | Daily Returns |
Teck Resources Ltd vs. PPG Industries
Performance |
| Timeline |
| Teck Resources |
| PPG Industries |
Teck Resources and PPG Industries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Teck Resources and PPG Industries
The main advantage of trading using opposite Teck Resources and PPG Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Teck Resources position performs unexpectedly, PPG Industries 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 PPG Industries will offset losses from the drop in PPG Industries' long position.| Teck Resources vs. PPG Industries | Teck Resources vs. Steel Dynamics | Teck Resources vs. POSCO Holdings | Teck Resources vs. Cemex SAB de |
| PPG Industries vs. RPM International | PPG Industries vs. Steel Dynamics | PPG Industries vs. Teck Resources Ltd | PPG Industries vs. Dow Inc |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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