Correlation Between Louisiana Pacific and Janus International

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Louisiana Pacific and Janus International 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 Louisiana Pacific and Janus International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Louisiana Pacific and Janus International Group, you can compare the effects of market volatilities on Louisiana Pacific and Janus International 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 Louisiana Pacific with a short position of Janus International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Louisiana Pacific and Janus International.

Diversification Opportunities for Louisiana Pacific and Janus International

LouisianaJanusDiversified AwayLouisianaJanusDiversified Away100%
0.08
  Correlation Coefficient

Significant diversification

The 3 months correlation between Louisiana and Janus is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Louisiana Pacific and Janus International Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Janus International and Louisiana Pacific 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 Louisiana Pacific are associated (or correlated) with Janus International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Janus International has no effect on the direction of Louisiana Pacific i.e., Louisiana Pacific and Janus International go up and down completely randomly.

Pair Corralation between Louisiana Pacific and Janus International

Considering the 90-day investment horizon Louisiana Pacific is expected to under-perform the Janus International. In addition to that, Louisiana Pacific is 1.4 times more volatile than Janus International Group. It trades about -0.23 of its total potential returns per unit of risk. Janus International Group is currently generating about -0.03 per unit of volatility. If you would invest  818.00  in Janus International Group on November 29, 2024 and sell it today you would lose (12.00) from holding Janus International Group or give up 1.47% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Louisiana Pacific  vs.  Janus International Group

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -5051015
JavaScript chart by amCharts 3.21.15LPX JBI
       Timeline  
Louisiana Pacific 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Louisiana Pacific has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in March 2025. The current disturbance may also be a sign of long term up-swing for the company investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb100105110115120
Janus International 

Risk-Adjusted Performance

Insignificant

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Janus International Group are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite fairly weak fundamental drivers, Janus International may actually be approaching a critical reversion point that can send shares even higher in March 2025.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb77.588.5

Louisiana Pacific and Janus International Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-3.68-2.75-1.83-0.910.00.851.722.593.46 0.0500.0550.0600.0650.0700.0750.080
JavaScript chart by amCharts 3.21.15LPX JBI
       Returns  

Pair Trading with Louisiana Pacific and Janus International

The main advantage of trading using opposite Louisiana Pacific and Janus International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Louisiana Pacific position performs unexpectedly, Janus International 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 Janus International will offset losses from the drop in Janus International's long position.
The idea behind Louisiana Pacific and Janus International Group pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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.

Other Complementary Tools

Premium Stories
Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope
Content Syndication
Quickly integrate customizable finance content to your own investment portal
Portfolio Rebalancing
Analyze risk-adjusted returns against different time horizons to find asset-allocation targets
Balance Of Power
Check stock momentum by analyzing Balance Of Power indicator and other technical ratios
Piotroski F Score
Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals