Installed Building Correlations

IBP Stock

USD 170.99 5.67 3.43%

The current 90-days correlation between Installed Building and Century Communities is 0.85 (i.e., Very poor diversification). The correlation of Installed Building is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak. If the correlation is 0, the equities are not correlated; they are entirely random.

Installed Building Correlation With Market

Very weak diversification

The correlation between Installed Building Products and DJI is 0.42 (i.e., Very weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Installed Building Products and DJI in the same portfolio, assuming nothing else is changed.

Check out Risk vs Return Analysis to better understand how to build diversified portfolios, which includes a position in Installed Building Products. 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 labor statistics.

Moving together with Installed Stock

0.91	BC	Brunswick	Pair Corr
0.98	BLD	Topbuild Corp Earnings Call Today	Pair Corr
0.92	CCS	Century Communities	Pair Corr
0.87	DFH	Dream Finders Homes Earnings Call Today	Pair Corr
0.91	DHI	DR Horton	Pair Corr
0.61	HWH	HWH International	Pair Corr
0.67	KTB	Kontoor Brands Earnings Call Today	Pair Corr
0.84	MHO	MI Homes	Pair Corr
0.83	MPX	Marine Products	Pair Corr
0.91	TPH	TRI Pointe Homes	Pair Corr
0.78	UHG	United Homes Group	Pair Corr
0.85	VRA	Vera Bradley	Pair Corr
0.91	LGIH	LGI Homes	Pair Corr

Moving against Installed Stock

0.5	RL	Ralph Lauren Corp	Pair Corr
0.55	TPR	Tapestry	Pair Corr
0.41	VFC	VF Corporation	Pair Corr
0.35	GOOS	Canada Goose Holdings	Pair Corr
0.33	AREBW	American Rebel Holdings	Pair Corr
0.56	SONY	Sony Group Corp	Pair Corr
0.5	JRSH	Jerash Holdings	Pair Corr
0.45	MYTE	MYT Netherlands Parent	Pair Corr
0.4	LANV	Lanvin Group Holdings	Pair Corr
0.38	PLBY	Plby Group	Pair Corr

Related Correlations Analysis

	CCS	MHO	TMHC	TPH	BZH	LGIH	MTH	SKY	LEGH	CVCO
CCS		0.93	0.92	0.93	0.88	0.96	0.97	0.52	0.23	0.28	CCS
MHO	0.93		0.8	0.93	0.97	0.97	0.96	0.29	-0.06	-0.05	MHO
TMHC	0.92	0.8		0.87	0.78	0.86	0.93	0.47	0.34	0.41	TMHC
TPH	0.93	0.93	0.87		0.89	0.96	0.94	0.31	0.09	0.05	TPH
BZH	0.88	0.97	0.78	0.89		0.94	0.92	0.25	-0.06	-0.11	BZH
LGIH	0.96	0.97	0.86	0.96	0.94		0.97	0.37	0.07	0.06	LGIH
MTH	0.97	0.96	0.93	0.94	0.92	0.97		0.38	0.11	0.16	MTH
SKY	0.52	0.29	0.47	0.31	0.25	0.37	0.38		0.73	0.8	SKY
LEGH	0.23	-0.06	0.34	0.09	-0.06	0.07	0.11	0.73		0.84	LEGH
CVCO	0.28	-0.05	0.41	0.05	-0.11	0.06	0.16	0.8	0.84		CVCO
	CCS	MHO	TMHC	TPH	BZH	LGIH	MTH	SKY	LEGH	CVCO

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Correlation Matchups

Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.

High positive correlations

MTH	+ 0.97	CCS
BZH	+ 0.97	MHO
LGIH	+ 0.97	MHO
MTH	+ 0.97	LGIH
LGIH	+ 0.96	CCS
MTH	+ 0.96	MHO

High negative correlations

CVCO	- 0.11	BZH
LEGH	- 0.06	BZH
LEGH	- 0.06	MHO
CVCO	- 0.05	MHO

Risk-Adjusted Indicators

There is a big difference between Installed Stock performing well and Installed Building Company doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze Installed Building's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.

	Mean Deviation	Jensen Alpha	Sortino Ratio	Treynor Ratio	Semi Deviation	Expected Shortfall	Potential Upside	Value @Risk	Maximum Drawdown
CCS	1.73	(0.19)	0.00	(0.14)	0.00	0.00	4.63	(3.68)	12.02
MHO	1.71	(0.36)	0.00	(0.28)	0.00	0.00	3.22	(3.53)	11.52
TMHC	1.54	(0.12)	0.00	(0.09)	0.00	0.00	3.37	(3.35)	9.77
TPH	1.59	(0.36)	0.00	(0.28)	0.00	0.00	3.08	(3.26)	15.57
BZH	2.15	(0.44)	0.00	(0.23)	0.00	0.00	4.58	(3.75)	24.99
LGIH	1.95	(0.38)	0.00	(0.22)	0.00	0.00	3.84	(3.77)	10.51
MTH	1.63	(0.21)	0.00	(0.19)	0.00	0.00	3.79	(3.68)	11.28
SKY	1.78	0.12	0.06	0.09	2.01	(1.97)	3.62	(3.32)	16.82
LEGH	1.44	0.01	0.01	0.02	1.89	(1.31)	2.82	(2.76)	7.24
CVCO	1.51	0.22	0.14	0.22	1.47	(1.74)	3.90	(2.24)	8.46

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