Correlation Between Graham and Jeld Wen

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Can any of the company-specific risk be diversified away by investing in both Graham and Jeld Wen 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 Graham and Jeld Wen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Graham and Jeld Wen Holding, you can compare the effects of market volatilities on Graham and Jeld Wen 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 Graham with a short position of Jeld Wen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Graham and Jeld Wen.

Diversification Opportunities for Graham and Jeld Wen

-0.71
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Graham and Jeld is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Graham and Jeld Wen Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jeld Wen Holding and Graham 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 Graham are associated (or correlated) with Jeld Wen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jeld Wen Holding has no effect on the direction of Graham i.e., Graham and Jeld Wen go up and down completely randomly.

Pair Corralation between Graham and Jeld Wen

Considering the 90-day investment horizon Graham is expected to generate 0.81 times more return on investment than Jeld Wen. However, Graham is 1.23 times less risky than Jeld Wen. It trades about 0.08 of its potential returns per unit of risk. Jeld Wen Holding is currently generating about -0.01 per unit of risk. If you would invest  5,447  in Graham on July 23, 2025 and sell it today you would earn a total of  734.00  from holding Graham or generate 13.48% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Graham  vs.  Jeld Wen Holding

 Performance 
       Timeline  
Graham 

Risk-Adjusted Performance

Mild

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Graham are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of very uncertain technical indicators, Graham displayed solid returns over the last few months and may actually be approaching a breakup point.
Jeld Wen Holding 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
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 rather sound essential indicators, Jeld Wen is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.

Graham and Jeld Wen Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Graham and Jeld Wen

The main advantage of trading using opposite Graham and Jeld Wen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Graham position performs unexpectedly, Jeld Wen 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 Jeld Wen will offset losses from the drop in Jeld Wen's long position.
The idea behind Graham and Jeld Wen Holding 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.
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.

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