Correlation Between Chemours and Jeld Wen
Can any of the company-specific risk be diversified away by investing in both Chemours and Jeld Wen 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 Chemours and Jeld Wen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chemours Co and Jeld Wen Holding, you can compare the effects of market volatilities on Chemours and Jeld Wen 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 Chemours with a short position of Jeld Wen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chemours and Jeld Wen.
Diversification Opportunities for Chemours and Jeld Wen
Good diversification
The 3 months correlation between Chemours and Jeld is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Chemours Co and Jeld Wen Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jeld Wen Holding and Chemours 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 Chemours Co are associated (or correlated) with Jeld Wen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jeld Wen Holding has no effect on the direction of Chemours i.e., Chemours and Jeld Wen go up and down completely randomly.
Pair Corralation between Chemours and Jeld Wen
Allowing for the 90-day total investment horizon Chemours Co is expected to generate 0.56 times more return on investment than Jeld Wen. However, Chemours Co is 1.78 times less risky than Jeld Wen. It trades about 0.21 of its potential returns per unit of risk. Jeld Wen Holding is currently generating about -0.12 per unit of risk. If you would invest 1,824 in Chemours Co on August 27, 2024 and sell it today you would earn a total of 329.00 from holding Chemours Co or generate 18.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chemours Co vs. Jeld Wen Holding
Performance |
| Timeline |
| Chemours |
| Jeld Wen Holding |
Chemours and Jeld Wen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chemours and Jeld Wen
The main advantage of trading using opposite Chemours and Jeld Wen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chemours position performs unexpectedly, Jeld Wen 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 Jeld Wen will offset losses from the drop in Jeld Wen's long position.| Chemours vs. Olin Corporation | Chemours vs. Cabot | Chemours vs. Kronos Worldwide | Chemours vs. LyondellBasell Industries NV |
| Jeld Wen vs. Trex Company | Jeld Wen vs. Gibraltar Industries | Jeld Wen vs. Travis Perkins PLC | Jeld Wen vs. Janus International Group |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |