NL Stock | | | USD 6.99 0.04 0.57% |
The current 90-days correlation between NL Industries and Landsea Homes Corp is 0.3 (i.e., Weak diversification). A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as NL Industries moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if NL Industries moves in either direction, the perfectly negatively correlated security will move in the opposite direction.
NL Industries Correlation With Market
Very weak diversification
The correlation between NL Industries and DJI is 0.49 (i.e., Very weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding NL Industries and DJI in the same portfolio, assuming nothing else is changed.
Check out
Correlation Analysis to better understand how to build diversified portfolios, which includes a position in NL Industries. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as
signals in bureau of economic analysis.
For more information on how to buy NL Industries Stock please use our
How to buy in NL Industries Stock guide.