Correlation Between Everus Construction and Steven Madden

Can any of the company-specific risk be diversified away by investing in both Everus Construction and Steven Madden 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 Everus Construction and Steven Madden into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Everus Construction Group and Steven Madden, you can compare the effects of market volatilities on Everus Construction and Steven Madden 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 Everus Construction with a short position of Steven Madden. Check out your portfolio center. Please also check ongoing floating volatility patterns of Everus Construction and Steven Madden.

Diversification Opportunities for Everus Construction and Steven Madden

0.71

Correlation Coefficient

Everus Construction  Steven Madden

Poor diversification

The 3 months correlation between Everus and Steven is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Everus Construction Group and Steven Madden in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Steven Madden and Everus Construction 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 Everus Construction Group are associated (or correlated) with Steven Madden. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Steven Madden has no effect on the direction of Everus Construction i.e., Everus Construction and Steven Madden go up and down completely randomly.

Pair Corralation between Everus Construction and Steven Madden

Considering the 90-day investment horizon Everus Construction Group is expected to generate 0.72 times more return on investment than Steven Madden. However, Everus Construction Group is 1.39 times less risky than Steven Madden. It trades about 0.25 of its potential returns per unit of risk. Steven Madden is currently generating about 0.07 per unit of risk. If you would invest  4,540  in Everus Construction Group on May 4, 2025 and sell it today you would earn a total of  2,477  from holding Everus Construction Group or generate 54.56% return on investment over 90 days.

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

Everus Construction Group  vs.  Steven Madden

Everus Construction

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Everus Construction Group are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain fundamental indicators, Everus Construction reported solid returns over the last few months and may actually be approaching a breakup point.

Steven Madden

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Steven Madden are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of very uncertain basic indicators, Steven Madden displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Everus Construction and Steven Madden

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

The idea behind Everus Construction Group and Steven Madden 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..