Correlation Between Topbuild Corp and Active Health

Can any of the company-specific risk be diversified away by investing in both Topbuild Corp and Active Health 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 Topbuild Corp and Active Health into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Topbuild Corp and Active Health Foods, you can compare the effects of market volatilities on Topbuild Corp and Active Health 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 Topbuild Corp with a short position of Active Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Topbuild Corp and Active Health.

Diversification Opportunities for Topbuild Corp and Active Health

0.0

Correlation Coefficient

Topbuild Corp  Active Health

Pay attention - limited upside

The 3 months correlation between Topbuild and Active is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Topbuild Corp and Active Health Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Active Health Foods and Topbuild Corp 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 Topbuild Corp are associated (or correlated) with Active Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Active Health Foods has no effect on the direction of Topbuild Corp i.e., Topbuild Corp and Active Health go up and down completely randomly.

Pair Corralation between Topbuild Corp and Active Health

If you would invest  42,250  in Topbuild Corp on September 3, 2025 and sell it today you would earn a total of  2,471  from holding Topbuild Corp or generate 5.85% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Topbuild Corp  vs.  Active Health Foods

Topbuild Corp

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Topbuild Corp are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady essential indicators, Topbuild Corp may actually be approaching a critical reversion point that can send shares even higher in January 2026.

Active Health Foods

Risk-Adjusted Performance

Weakest

Over the last 90 days Active Health Foods has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, Active Health is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Topbuild Corp and Active Health

The main advantage of trading using opposite Topbuild Corp and Active Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Topbuild Corp position performs unexpectedly, Active Health 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 Active Health will offset losses from the drop in Active Health's long position.

The idea behind Topbuild Corp and Active Health Foods pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.