Correlation Between First Ship and Jeld Wen
Can any of the company-specific risk be diversified away by investing in both First Ship 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 First Ship and Jeld Wen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First Ship Lease and Jeld Wen Holding, you can compare the effects of market volatilities on First Ship 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 First Ship with a short position of Jeld Wen. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Ship and Jeld Wen.
Diversification Opportunities for First Ship and Jeld Wen
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between First and Jeld is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding First Ship Lease 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 First Ship 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 First Ship Lease 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 First Ship i.e., First Ship and Jeld Wen go up and down completely randomly.
Pair Corralation between First Ship and Jeld Wen
If you would invest 4.00 in First Ship Lease on November 28, 2024 and sell it today you would earn a total of 0.00 from holding First Ship Lease or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
First Ship Lease vs. Jeld Wen Holding
Performance |
| Timeline |
| First Ship Lease |
| Jeld Wen Holding |
First Ship and Jeld Wen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Ship and Jeld Wen
The main advantage of trading using opposite First Ship and Jeld Wen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Ship 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.| First Ship vs. Universal Display | First Ship vs. Life Time Group | First Ship vs. Insteel Industries | First Ship vs. American Environmental |
| 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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