Correlation Between Jeld Wen and Diguang Intl
Can any of the company-specific risk be diversified away by investing in both Jeld Wen and Diguang Intl 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 Diguang Intl 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 Diguang Intl Dev, you can compare the effects of market volatilities on Jeld Wen and Diguang Intl 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 Diguang Intl. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jeld Wen and Diguang Intl.
Diversification Opportunities for Jeld Wen and Diguang Intl
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jeld and Diguang is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Jeld Wen Holding and Diguang Intl Dev in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Diguang Intl Dev 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 Diguang Intl. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Diguang Intl Dev has no effect on the direction of Jeld Wen i.e., Jeld Wen and Diguang Intl go up and down completely randomly.
Pair Corralation between Jeld Wen and Diguang Intl
Given the investment horizon of 90 days Jeld Wen Holding is expected to generate 0.13 times more return on investment than Diguang Intl. However, Jeld Wen Holding is 7.65 times less risky than Diguang Intl. It trades about -0.1 of its potential returns per unit of risk. Diguang Intl Dev is currently generating about -0.21 per unit of risk. If you would invest 1,130 in Jeld Wen Holding on September 12, 2024 and sell it today you would lose (68.00) from holding Jeld Wen Holding or give up 6.02% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jeld Wen Holding vs. Diguang Intl Dev
Performance |
| Timeline |
| Jeld Wen Holding |
| Diguang Intl Dev |
Jeld Wen and Diguang Intl Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jeld Wen and Diguang Intl
The main advantage of trading using opposite Jeld Wen and Diguang Intl positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jeld Wen position performs unexpectedly, Diguang Intl 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 Diguang Intl will offset losses from the drop in Diguang Intl'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 |
| Diguang Intl vs. Funko Inc | Diguang Intl vs. Canlan Ice Sports | Diguang Intl vs. Playa Hotels Resorts | Diguang Intl vs. WiMi Hologram Cloud |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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