Correlation Between Washington Federal and Jeld Wen
Can any of the company-specific risk be diversified away by investing in both Washington Federal 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 Washington Federal and Jeld Wen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Washington Federal and Jeld Wen Holding, you can compare the effects of market volatilities on Washington Federal 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 Washington Federal with a short position of Jeld Wen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Washington Federal and Jeld Wen.
Diversification Opportunities for Washington Federal and Jeld Wen
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Washington and Jeld is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Washington Federal 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 Washington Federal 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 Washington Federal 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 Washington Federal i.e., Washington Federal and Jeld Wen go up and down completely randomly.
Pair Corralation between Washington Federal and Jeld Wen
Given the investment horizon of 90 days Washington Federal is expected to under-perform the Jeld Wen. But the stock apears to be less risky and, when comparing its historical volatility, Washington Federal is 3.47 times less risky than Jeld Wen. The stock trades about -0.05 of its potential returns per unit of risk. The Jeld Wen Holding is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 420.00 in Jeld Wen Holding on July 20, 2025 and sell it today you would earn a total of 39.00 from holding Jeld Wen Holding or generate 9.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Washington Federal vs. Jeld Wen Holding
Performance |
| Timeline |
| Washington Federal |
| Jeld Wen Holding |
Washington Federal and Jeld Wen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Washington Federal and Jeld Wen
The main advantage of trading using opposite Washington Federal and Jeld Wen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Washington Federal 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.| Washington Federal vs. Trustmark | Washington Federal vs. First Financial Bancorp | Washington Federal vs. Banner | Washington Federal vs. Enterprise Financial Services |
| Jeld Wen vs. Magnera Corp placeholder | Jeld Wen vs. NET Power | Jeld Wen vs. CEA Industries | Jeld Wen vs. Babcock Wilcox Enterprises |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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