Correlation Between PGT Innovations and Azek
Can any of the company-specific risk be diversified away by investing in both PGT Innovations and Azek 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 PGT Innovations and Azek into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PGT Innovations and Azek Company, you can compare the effects of market volatilities on PGT Innovations and Azek 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 PGT Innovations with a short position of Azek. Check out your portfolio center. Please also check ongoing floating volatility patterns of PGT Innovations and Azek.
Diversification Opportunities for PGT Innovations and Azek
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between PGT and Azek is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding PGT Innovations and Azek Company in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Azek Company and PGT Innovations 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 PGT Innovations are associated (or correlated) with Azek. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Azek Company has no effect on the direction of PGT Innovations i.e., PGT Innovations and Azek go up and down completely randomly.
Pair Corralation between PGT Innovations and Azek
If you would invest 3,154 in Azek Company on August 24, 2024 and sell it today you would earn a total of 1,827 from holding Azek Company or generate 57.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 0.4% |
| Values | Daily Returns |
PGT Innovations vs. Azek Company
Performance |
| Timeline |
| PGT Innovations |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Azek Company |
PGT Innovations and Azek Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PGT Innovations and Azek
The main advantage of trading using opposite PGT Innovations and Azek positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PGT Innovations position performs unexpectedly, Azek 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 Azek will offset losses from the drop in Azek's long position.| PGT Innovations vs. Quanex Building Products | PGT Innovations vs. Janus International Group | PGT Innovations vs. Interface | PGT Innovations vs. Apogee Enterprises |
| Azek vs. Louisiana Pacific | Azek vs. Masco | Azek vs. Fortune Brands Innovations | Azek vs. Trane Technologies plc |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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