Correlation Between Jeld Wen and CT Real
Can any of the company-specific risk be diversified away by investing in both Jeld Wen and CT Real 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 CT Real 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 CT Real Estate, you can compare the effects of market volatilities on Jeld Wen and CT Real 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 CT Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jeld Wen and CT Real.
Diversification Opportunities for Jeld Wen and CT Real
Poor diversification
The 3 months correlation between Jeld and CTRRF is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Jeld Wen Holding and CT Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CT Real Estate 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 CT Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CT Real Estate has no effect on the direction of Jeld Wen i.e., Jeld Wen and CT Real go up and down completely randomly.
Pair Corralation between Jeld Wen and CT Real
Given the investment horizon of 90 days Jeld Wen Holding is expected to under-perform the CT Real. In addition to that, Jeld Wen is 1.66 times more volatile than CT Real Estate. It trades about -0.05 of its total potential returns per unit of risk. CT Real Estate is currently generating about 0.03 per unit of volatility. If you would invest 988.00 in CT Real Estate on August 24, 2024 and sell it today you would earn a total of 49.00 from holding CT Real Estate or generate 4.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jeld Wen Holding vs. CT Real Estate
Performance |
| Timeline |
| Jeld Wen Holding |
| CT Real Estate |
Jeld Wen and CT Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jeld Wen and CT Real
The main advantage of trading using opposite Jeld Wen and CT Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jeld Wen position performs unexpectedly, CT Real 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 CT Real will offset losses from the drop in CT Real'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 |
| CT Real vs. Phillips Edison Co | CT Real vs. Simon Property Group | CT Real vs. Inventrust Properties Corp | CT Real vs. Site Centers Corp |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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