Correlation Between PGT Innovations and Masonite International
Can any of the company-specific risk be diversified away by investing in both PGT Innovations and Masonite 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 PGT Innovations and Masonite International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PGT Innovations and Masonite International Corp, you can compare the effects of market volatilities on PGT Innovations and Masonite 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 PGT Innovations with a short position of Masonite International. Check out your portfolio center. Please also check ongoing floating volatility patterns of PGT Innovations and Masonite International.
Diversification Opportunities for PGT Innovations and Masonite International
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between PGT and Masonite is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding PGT Innovations and Masonite International Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Masonite International 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 Masonite International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Masonite International has no effect on the direction of PGT Innovations i.e., PGT Innovations and Masonite International go up and down completely randomly.
Pair Corralation between PGT Innovations and Masonite International
If you would invest (100.00) in Masonite International Corp on November 9, 2024 and sell it today you would earn a total of 100.00 from holding Masonite International Corp or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PGT Innovations vs. Masonite International Corp
Performance |
| Timeline |
| PGT Innovations |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| Masonite International |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
PGT Innovations and Masonite International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PGT Innovations and Masonite International
The main advantage of trading using opposite PGT Innovations and Masonite International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PGT Innovations position performs unexpectedly, Masonite 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 Masonite International will offset losses from the drop in Masonite International's long position.| PGT Innovations vs. Quanex Building Products | PGT Innovations vs. Janus International Group | PGT Innovations vs. Interface | PGT Innovations vs. Apogee Enterprises |
| Masonite International vs. Jeld Wen Holding | Masonite International vs. Installed Building Products | Masonite International vs. Armstrong World Industries | Masonite International vs. GMS Inc |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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