Correlation Between Jeld Wen and Signature Eyewear
Can any of the company-specific risk be diversified away by investing in both Jeld Wen and Signature Eyewear 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 Signature Eyewear 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 Signature Eyewear, you can compare the effects of market volatilities on Jeld Wen and Signature Eyewear 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 Signature Eyewear. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jeld Wen and Signature Eyewear.
Diversification Opportunities for Jeld Wen and Signature Eyewear
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Jeld and Signature is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Jeld Wen Holding and Signature Eyewear in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Signature Eyewear 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 Signature Eyewear. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Signature Eyewear has no effect on the direction of Jeld Wen i.e., Jeld Wen and Signature Eyewear go up and down completely randomly.
Pair Corralation between Jeld Wen and Signature Eyewear
If you would invest 0.03 in Signature Eyewear on September 12, 2024 and sell it today you would earn a total of 0.00 from holding Signature Eyewear or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.3% |
| Values | Daily Returns |
Jeld Wen Holding vs. Signature Eyewear
Performance |
| Timeline |
| Jeld Wen Holding |
| Signature Eyewear |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Jeld Wen and Signature Eyewear Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jeld Wen and Signature Eyewear
The main advantage of trading using opposite Jeld Wen and Signature Eyewear positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jeld Wen position performs unexpectedly, Signature Eyewear 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 Signature Eyewear will offset losses from the drop in Signature Eyewear'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 |
| Signature Eyewear vs. Jeld Wen Holding | Signature Eyewear vs. Lipocine | Signature Eyewear vs. EMCOR Group | Signature Eyewear vs. Asure Software |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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