Correlation Between Jeld Wen and Apex Global

Can any of the company-specific risk be diversified away by investing in both Jeld Wen and Apex Global 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 Apex Global 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 Apex Global Brands, you can compare the effects of market volatilities on Jeld Wen and Apex Global 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 Apex Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jeld Wen and Apex Global.

Diversification Opportunities for Jeld Wen and Apex Global

0.0

Correlation Coefficient

Jeld Wen  Apex Global

Pay attention - limited upside

The 3 months correlation between Jeld and Apex is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Jeld Wen Holding and Apex Global Brands in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apex Global Brands 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 Apex Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apex Global Brands has no effect on the direction of Jeld Wen i.e., Jeld Wen and Apex Global go up and down completely randomly.

Pair Corralation between Jeld Wen and Apex Global

If you would invest (100.00) in Apex Global Brands on February 1, 2024 and sell it today you would earn a total of  100.00  from holding Apex Global Brands or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Jeld Wen Holding  vs.  Apex Global Brands

Jeld Wen Holding

Risk-Adjusted Performance

3 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Jeld Wen Holding are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of rather fragile essential indicators, Jeld Wen may actually be approaching a critical reversion point that can send shares even higher in June 2024.

Apex Global Brands

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Apex Global Brands has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound forward-looking signals, Apex Global is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Jeld Wen and Apex Global

The main advantage of trading using opposite Jeld Wen and Apex Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jeld Wen position performs unexpectedly, Apex Global 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 Apex Global will offset losses from the drop in Apex Global's long position.

The idea behind Jeld Wen Holding and Apex Global Brands 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.

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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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.