Correlation Between Femasys and Jeld Wen
Can any of the company-specific risk be diversified away by investing in both Femasys 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 Femasys and Jeld Wen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Femasys and Jeld Wen Holding, you can compare the effects of market volatilities on Femasys 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 Femasys with a short position of Jeld Wen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Femasys and Jeld Wen.
Diversification Opportunities for Femasys and Jeld Wen
Very weak diversification
The 3 months correlation between Femasys and Jeld is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Femasys 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 Femasys 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 Femasys 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 Femasys i.e., Femasys and Jeld Wen go up and down completely randomly.
Pair Corralation between Femasys and Jeld Wen
Given the investment horizon of 90 days Femasys is expected to generate 5.41 times more return on investment than Jeld Wen. However, Femasys is 5.41 times more volatile than Jeld Wen Holding. It trades about 0.04 of its potential returns per unit of risk. Jeld Wen Holding is currently generating about 0.02 per unit of risk. If you would invest 109.00 in Femasys on September 3, 2024 and sell it today you would earn a total of 3.00 from holding Femasys or generate 2.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Femasys vs. Jeld Wen Holding
Performance |
| Timeline |
| Femasys |
| Jeld Wen Holding |
Femasys and Jeld Wen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Femasys and Jeld Wen
The main advantage of trading using opposite Femasys and Jeld Wen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Femasys 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.| Femasys vs. Precision Optics, | Femasys vs. Repro Med Systems | Femasys vs. InfuSystems Holdings | Femasys vs. Utah Medical Products |
| Jeld Wen vs. Gibraltar Industries | Jeld Wen vs. Quanex Building Products | Jeld Wen vs. Perma Pipe International Holdings | Jeld Wen vs. Interface |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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