Correlation Between Everus Construction and Hexcel

Can any of the company-specific risk be diversified away by investing in both Everus Construction and Hexcel 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 Hexcel 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 Hexcel, you can compare the effects of market volatilities on Everus Construction and Hexcel 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 Hexcel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Everus Construction and Hexcel.

Diversification Opportunities for Everus Construction and Hexcel

0.52

Correlation Coefficient

Everus Construction  Hexcel

Very weak diversification

The 3 months correlation between Everus and Hexcel is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Everus Construction Group and Hexcel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hexcel 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 Hexcel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hexcel has no effect on the direction of Everus Construction i.e., Everus Construction and Hexcel go up and down completely randomly.

Pair Corralation between Everus Construction and Hexcel

Considering the 90-day investment horizon Everus Construction is expected to generate 1.86 times less return on investment than Hexcel. In addition to that, Everus Construction is 1.57 times more volatile than Hexcel. It trades about 0.04 of its total potential returns per unit of risk. Hexcel is currently generating about 0.12 per unit of volatility. If you would invest  6,341  in Hexcel on August 26, 2025 and sell it today you would earn a total of  952.00  from holding Hexcel or generate 15.01% return on investment over 90 days.

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

Everus Construction Group  vs.  Hexcel

Everus Construction

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Everus Construction Group are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly unfluctuating fundamental indicators, Everus Construction may actually be approaching a critical reversion point that can send shares even higher in December 2025.

Hexcel

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Hexcel are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite quite uncertain basic indicators, Hexcel disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Everus Construction and Hexcel

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

The idea behind Everus Construction Group and Hexcel 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.