Correlation Between American Woodmark and TriMas
Can any of the company-specific risk be diversified away by investing in both American Woodmark and TriMas 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 American Woodmark and TriMas into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Woodmark and TriMas, you can compare the effects of market volatilities on American Woodmark and TriMas 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 American Woodmark with a short position of TriMas. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Woodmark and TriMas.
Diversification Opportunities for American Woodmark and TriMas
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between American and TriMas is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding American Woodmark and TriMas in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TriMas and American Woodmark 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 American Woodmark are associated (or correlated) with TriMas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TriMas has no effect on the direction of American Woodmark i.e., American Woodmark and TriMas go up and down completely randomly.
Pair Corralation between American Woodmark and TriMas
If you would invest 3,053 in TriMas on July 20, 2025 and sell it today you would earn a total of 636.00 from holding TriMas or generate 20.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 1.54% |
| Values | Daily Returns |
American Woodmark vs. TriMas
Performance |
| Timeline |
| American Woodmark |
Risk-Adjusted Performance
Fair
Weak | Strong |
| TriMas |
American Woodmark and TriMas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Woodmark and TriMas
The main advantage of trading using opposite American Woodmark and TriMas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Woodmark position performs unexpectedly, TriMas 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 TriMas will offset losses from the drop in TriMas' long position.| American Woodmark vs. Ethan Allen Interiors | American Woodmark vs. Leggett Platt Incorporated | American Woodmark vs. Flexsteel Industries | American Woodmark vs. La Z Boy Incorporated |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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