Correlation Between CSW Industrials, and Core Main

Can any of the company-specific risk be diversified away by investing in both CSW Industrials, and Core Main 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 CSW Industrials, and Core Main into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between CSW Industrials, and Core Main, you can compare the effects of market volatilities on CSW Industrials, and Core Main 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 CSW Industrials, with a short position of Core Main. Check out your portfolio center. Please also check ongoing floating volatility patterns of CSW Industrials, and Core Main.

Diversification Opportunities for CSW Industrials, and Core Main

-0.68

Correlation Coefficient

CSW Industrials,  Core Main

Excellent diversification

The 3 months correlation between CSW and Core is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding CSW Industrials, and Core Main in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Core Main and CSW Industrials, 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 CSW Industrials, are associated (or correlated) with Core Main. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Core Main has no effect on the direction of CSW Industrials, i.e., CSW Industrials, and Core Main go up and down completely randomly.

Pair Corralation between CSW Industrials, and Core Main

Considering the 90-day investment horizon CSW Industrials, is expected to under-perform the Core Main. In addition to that, CSW Industrials, is 1.29 times more volatile than Core Main. It trades about -0.08 of its total potential returns per unit of risk. Core Main is currently generating about 0.17 per unit of volatility. If you would invest  5,493  in Core Main on May 26, 2025 and sell it today you would earn a total of  1,056  from holding Core Main or generate 19.22% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

CSW Industrials,  vs.  Core Main

CSW Industrials,

Risk-Adjusted Performance

Weakest

Over the last 90 days CSW Industrials, has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest inconsistent performance, the Stock's basic indicators remain stable and the latest fuss on Wall Street may also be a sign of long-term gains for the venture sophisticated investors.

Core Main

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Core Main are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of very weak basic indicators, Core Main displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with CSW Industrials, and Core Main

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

The idea behind CSW Industrials, and Core Main 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.