Correlation Between Jeld Wen and China Eastern
Can any of the company-specific risk be diversified away by investing in both Jeld Wen and China Eastern 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 Jeld Wen and China Eastern into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jeld Wen Holding and China Eastern Airlines, you can compare the effects of market volatilities on Jeld Wen and China Eastern 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 Jeld Wen with a short position of China Eastern. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jeld Wen and China Eastern.
Diversification Opportunities for Jeld Wen and China Eastern
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Jeld and China is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Jeld Wen Holding and China Eastern Airlines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Eastern Airlines and Jeld Wen 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 Jeld Wen Holding are associated (or correlated) with China Eastern. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Eastern Airlines has no effect on the direction of Jeld Wen i.e., Jeld Wen and China Eastern go up and down completely randomly.
Pair Corralation between Jeld Wen and China Eastern
If you would invest 774.00 in Jeld Wen Holding on November 10, 2024 and sell it today you would earn a total of 97.00 from holding Jeld Wen Holding or generate 12.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Jeld Wen Holding vs. China Eastern Airlines
Performance |
| Timeline |
| Jeld Wen Holding |
| China Eastern Airlines |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Jeld Wen and China Eastern Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jeld Wen and China Eastern
The main advantage of trading using opposite Jeld Wen and China Eastern positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jeld Wen position performs unexpectedly, China Eastern 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 China Eastern will offset losses from the drop in China Eastern's long position.| Jeld Wen vs. Gibraltar Industries | Jeld Wen vs. Quanex Building Products | Jeld Wen vs. Perma Pipe International Holdings | Jeld Wen vs. Interface |
| China Eastern vs. Reyna Silver Corp | China Eastern vs. Discover Financial Services | China Eastern vs. Bankwell Financial Group | China Eastern vs. Nicola Mining |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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