Correlation Between Jeld Wen and Solidion Technology

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

Diversification Opportunities for Jeld Wen and Solidion Technology

-0.48

Correlation Coefficient

Jeld Wen  Solidion Technology

Very good diversification

The 3 months correlation between Jeld and Solidion is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Jeld Wen Holding and Solidion Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Solidion Technology 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 Solidion Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Solidion Technology has no effect on the direction of Jeld Wen i.e., Jeld Wen and Solidion Technology go up and down completely randomly.

Pair Corralation between Jeld Wen and Solidion Technology

Given the investment horizon of 90 days Jeld Wen Holding is expected to generate 0.32 times more return on investment than Solidion Technology. However, Jeld Wen Holding is 3.14 times less risky than Solidion Technology. It trades about 0.01 of its potential returns per unit of risk. Solidion Technology is currently generating about -0.01 per unit of risk. If you would invest  1,000.00  in Jeld Wen Holding on September 23, 2024 and sell it today you would lose (158.00) from holding Jeld Wen Holding or give up 15.8% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Jeld Wen Holding  vs.  Solidion Technology

Jeld Wen Holding

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Jeld Wen Holding has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's essential indicators remain rather sound which may send shares a bit higher in January 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Solidion Technology

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Solidion Technology are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite fairly unfluctuating basic indicators, Solidion Technology demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Jeld Wen and Solidion Technology

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

The idea behind Jeld Wen Holding and Solidion Technology 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.