Correlation Between O I and Interface

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

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

Diversification Opportunities for O I and Interface

-0.13

Correlation Coefficient

O I  Interface

Good diversification

The 3 months correlation between O I and Interface is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding O I Glass and Interface in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Interface and O I 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 O I Glass are associated (or correlated) with Interface. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Interface has no effect on the direction of O I i.e., O I and Interface go up and down completely randomly.

Pair Corralation between O I and Interface

Allowing for the 90-day total investment horizon O I is expected to generate 8.95 times less return on investment than Interface. But when comparing it to its historical volatility, O I Glass is 1.24 times less risky than Interface. It trades about 0.02 of its potential returns per unit of risk. Interface is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest  2,075  in Interface on May 17, 2025 and sell it today you would earn a total of  599.00  from holding Interface or generate 28.87% return on investment over 90 days.

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

O I Glass  vs.  Interface

O I Glass

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in O I Glass are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong forward indicators, O I is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.

Interface

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Interface are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of rather conflicting essential indicators, Interface exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with O I and Interface

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

The idea behind O I Glass and Interface 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.

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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..