Correlation Between Titan America and Vulcan Materials
Can any of the company-specific risk be diversified away by investing in both Titan America and Vulcan Materials 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 Titan America and Vulcan Materials into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Titan America SA and Vulcan Materials, you can compare the effects of market volatilities on Titan America and Vulcan Materials 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 Titan America with a short position of Vulcan Materials. Check out your portfolio center. Please also check ongoing floating volatility patterns of Titan America and Vulcan Materials.
Diversification Opportunities for Titan America and Vulcan Materials
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Titan and Vulcan is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Titan America SA and Vulcan Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vulcan Materials and Titan America 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 Titan America SA are associated (or correlated) with Vulcan Materials. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vulcan Materials has no effect on the direction of Titan America i.e., Titan America and Vulcan Materials go up and down completely randomly.
Pair Corralation between Titan America and Vulcan Materials
Given the investment horizon of 90 days Titan America SA is expected to generate 2.08 times more return on investment than Vulcan Materials. However, Titan America is 2.08 times more volatile than Vulcan Materials. It trades about 0.07 of its potential returns per unit of risk. Vulcan Materials is currently generating about 0.14 per unit of risk. If you would invest 1,417 in Titan America SA on June 5, 2025 and sell it today you would earn a total of 134.00 from holding Titan America SA or generate 9.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Titan America SA vs. Vulcan Materials
Performance |
| Timeline |
| Titan America SA |
| Vulcan Materials |
Titan America and Vulcan Materials Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Titan America and Vulcan Materials
The main advantage of trading using opposite Titan America and Vulcan Materials positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Titan America position performs unexpectedly, Vulcan Materials 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 Vulcan Materials will offset losses from the drop in Vulcan Materials' long position.| Titan America vs. BCE Inc | Titan America vs. Sonos Inc | Titan America vs. Western Digital | Titan America vs. Getty Images Holdings |
| Vulcan Materials vs. Eagle Materials | Vulcan Materials vs. Martin Marietta Materials | Vulcan Materials vs. Cemex SAB de | Vulcan Materials vs. TDH Holdings |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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