Correlation Between MSC Industrial and Everus Construction

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

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

Diversification Opportunities for MSC Industrial and Everus Construction

-0.61

Correlation Coefficient

MSC Industrial  Everus Construction

Excellent diversification

The 3 months correlation between MSC and Everus is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding MSC Industrial Direct and Everus Construction Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Everus Construction and MSC Industrial 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 MSC Industrial Direct are associated (or correlated) with Everus Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Everus Construction has no effect on the direction of MSC Industrial i.e., MSC Industrial and Everus Construction go up and down completely randomly.

Pair Corralation between MSC Industrial and Everus Construction

Considering the 90-day investment horizon MSC Industrial Direct is expected to under-perform the Everus Construction. But the stock apears to be less risky and, when comparing its historical volatility, MSC Industrial Direct is 2.14 times less risky than Everus Construction. The stock trades about -0.02 of its potential returns per unit of risk. The Everus Construction Group is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  7,856  in Everus Construction Group on August 26, 2025 and sell it today you would earn a total of  392.00  from holding Everus Construction Group or generate 4.99% return on investment over 90 days.

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

MSC Industrial Direct  vs.  Everus Construction Group

MSC Industrial Direct

Risk-Adjusted Performance

Weakest

Over the last 90 days MSC Industrial Direct has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, MSC Industrial is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

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.

Pair Trading with MSC Industrial and Everus Construction

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

The idea behind MSC Industrial Direct and Everus Construction Group 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.