Correlation Between Jeld Wen and Lakeland Industries
Can any of the company-specific risk be diversified away by investing in both Jeld Wen and Lakeland Industries 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 Lakeland Industries 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 Lakeland Industries, you can compare the effects of market volatilities on Jeld Wen and Lakeland Industries 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 Lakeland Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jeld Wen and Lakeland Industries.
Diversification Opportunities for Jeld Wen and Lakeland Industries
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jeld and Lakeland is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Jeld Wen Holding and Lakeland Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lakeland Industries 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 Lakeland Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lakeland Industries has no effect on the direction of Jeld Wen i.e., Jeld Wen and Lakeland Industries go up and down completely randomly.
Pair Corralation between Jeld Wen and Lakeland Industries
Given the investment horizon of 90 days Jeld Wen Holding is expected to under-perform the Lakeland Industries. In addition to that, Jeld Wen is 1.42 times more volatile than Lakeland Industries. It trades about -0.05 of its total potential returns per unit of risk. Lakeland Industries is currently generating about 0.07 per unit of volatility. If you would invest 1,889 in Lakeland Industries on September 1, 2024 and sell it today you would earn a total of 375.00 from holding Lakeland Industries or generate 19.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jeld Wen Holding vs. Lakeland Industries
Performance |
| Timeline |
| Jeld Wen Holding |
| Lakeland Industries |
Jeld Wen and Lakeland Industries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jeld Wen and Lakeland Industries
The main advantage of trading using opposite Jeld Wen and Lakeland Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jeld Wen position performs unexpectedly, Lakeland Industries 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 Lakeland Industries will offset losses from the drop in Lakeland Industries' long position.| Jeld Wen vs. Trex Company | Jeld Wen vs. Gibraltar Industries | Jeld Wen vs. Apogee Enterprises | Jeld Wen vs. Travis Perkins PLC |
| Lakeland Industries vs. Vince Holding Corp | Lakeland Industries vs. Oxford Industries | Lakeland Industries vs. Gildan Activewear | Lakeland Industries vs. Columbia Sportswear |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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