Correlation Between Jeld Wen and Interface
Can any of the company-specific risk be diversified away by investing in both Jeld Wen and Interface 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 Interface 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 Interface, you can compare the effects of market volatilities on Jeld Wen and Interface 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 Interface. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jeld Wen and Interface.
Diversification Opportunities for Jeld Wen and Interface
Excellent diversification
The 3 months correlation between Jeld and Interface is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Jeld Wen Holding and Interface in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Interface 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 Interface. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Interface has no effect on the direction of Jeld Wen i.e., Jeld Wen and Interface go up and down completely randomly.
Pair Corralation between Jeld Wen and Interface
Given the investment horizon of 90 days Jeld Wen Holding is expected to generate 2.03 times more return on investment than Interface. However, Jeld Wen is 2.03 times more volatile than Interface. It trades about 0.19 of its potential returns per unit of risk. Interface is currently generating about 0.02 per unit of risk. If you would invest 819.00 in Jeld Wen Holding on November 1, 2024 and sell it today you would earn a total of 98.00 from holding Jeld Wen Holding or generate 11.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jeld Wen Holding vs. Interface
Performance |
| Timeline |
| Jeld Wen Holding |
| Interface |
Jeld Wen and Interface Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jeld Wen and Interface
The main advantage of trading using opposite Jeld Wen and Interface positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jeld Wen position performs unexpectedly, Interface 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 Interface will offset losses from the drop in Interface'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 |
| Interface vs. Quanex Building Products | Interface vs. Janus International Group | Interface vs. Apogee Enterprises | Interface vs. Gibraltar Industries |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |