Correlation Between Masonite International and PGT Innovations
Can any of the company-specific risk be diversified away by investing in both Masonite International and PGT Innovations 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 Masonite International and PGT Innovations into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Masonite International Corp and PGT Innovations, you can compare the effects of market volatilities on Masonite International and PGT Innovations 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 Masonite International with a short position of PGT Innovations. Check out your portfolio center. Please also check ongoing floating volatility patterns of Masonite International and PGT Innovations.
Diversification Opportunities for Masonite International and PGT Innovations
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Masonite and PGT is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Masonite International Corp and PGT Innovations in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PGT Innovations and Masonite International 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 Masonite International Corp are associated (or correlated) with PGT Innovations. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PGT Innovations has no effect on the direction of Masonite International i.e., Masonite International and PGT Innovations go up and down completely randomly.
Pair Corralation between Masonite International and PGT Innovations
If you would invest (100.00) in PGT Innovations on November 9, 2024 and sell it today you would earn a total of 100.00 from holding PGT Innovations or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Masonite International Corp vs. PGT Innovations
Performance |
| Timeline |
| Masonite International |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| PGT Innovations |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Masonite International and PGT Innovations Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Masonite International and PGT Innovations
The main advantage of trading using opposite Masonite International and PGT Innovations positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Masonite International position performs unexpectedly, PGT Innovations 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 PGT Innovations will offset losses from the drop in PGT Innovations' long position.| Masonite International vs. Jeld Wen Holding | Masonite International vs. Installed Building Products | Masonite International vs. Armstrong World Industries | Masonite International vs. GMS Inc |
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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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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