Correlation Between Jeld Wen and Canada Goose
Can any of the company-specific risk be diversified away by investing in both Jeld Wen and Canada Goose 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 Canada Goose 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 Canada Goose Holdings, you can compare the effects of market volatilities on Jeld Wen and Canada Goose 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 Canada Goose. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jeld Wen and Canada Goose.
Diversification Opportunities for Jeld Wen and Canada Goose
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Jeld and Canada is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Jeld Wen Holding and Canada Goose Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Canada Goose Holdings 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 Canada Goose. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Canada Goose Holdings has no effect on the direction of Jeld Wen i.e., Jeld Wen and Canada Goose go up and down completely randomly.
Pair Corralation between Jeld Wen and Canada Goose
Given the investment horizon of 90 days Jeld Wen Holding is expected to generate 0.94 times more return on investment than Canada Goose. However, Jeld Wen Holding is 1.07 times less risky than Canada Goose. It trades about 0.08 of its potential returns per unit of risk. Canada Goose Holdings is currently generating about -0.01 per unit of risk. If you would invest 1,860 in Jeld Wen Holding on January 31, 2024 and sell it today you would earn a total of 240.00 from holding Jeld Wen Holding or generate 12.9% 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. Canada Goose Holdings
Performance |
Timeline |
Jeld Wen Holding |
Canada Goose Holdings |
Jeld Wen and Canada Goose Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Jeld Wen and Canada Goose
The main advantage of trading using opposite Jeld Wen and Canada Goose positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jeld Wen position performs unexpectedly, Canada Goose 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 Canada Goose will offset losses from the drop in Canada Goose's long position.Jeld Wen vs. Travis Perkins plc | Jeld Wen vs. Travis Perkins PLC | Jeld Wen vs. Janus International Group | Jeld Wen vs. Interface |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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