Correlation Between Jeld Wen and Intelligent Living
Can any of the company-specific risk be diversified away by investing in both Jeld Wen and Intelligent Living 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 Intelligent Living 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 Intelligent Living Application, you can compare the effects of market volatilities on Jeld Wen and Intelligent Living 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 Intelligent Living. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jeld Wen and Intelligent Living.
Diversification Opportunities for Jeld Wen and Intelligent Living
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Jeld and Intelligent is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Jeld Wen Holding and Intelligent Living Application in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intelligent Living 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 Intelligent Living. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intelligent Living has no effect on the direction of Jeld Wen i.e., Jeld Wen and Intelligent Living go up and down completely randomly.
Pair Corralation between Jeld Wen and Intelligent Living
Given the investment horizon of 90 days Jeld Wen is expected to generate 1.94 times less return on investment than Intelligent Living. But when comparing it to its historical volatility, Jeld Wen Holding is 2.07 times less risky than Intelligent Living. It trades about 0.02 of its potential returns per unit of risk. Intelligent Living Application is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 159.00 in Intelligent Living Application on August 29, 2024 and sell it today you would lose (57.00) from holding Intelligent Living Application or give up 35.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jeld Wen Holding vs. Intelligent Living Application
Performance |
| Timeline |
| Jeld Wen Holding |
| Intelligent Living |
Jeld Wen and Intelligent Living Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jeld Wen and Intelligent Living
The main advantage of trading using opposite Jeld Wen and Intelligent Living positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jeld Wen position performs unexpectedly, Intelligent Living 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 Intelligent Living will offset losses from the drop in Intelligent Living'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 |
| Intelligent Living vs. Azek Company | Intelligent Living vs. Atlas Engineered Products | Intelligent Living vs. Antelope Enterprise Holdings | Intelligent Living vs. Latham Group |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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