Correlation Between American Woodmark and Libbey
Can any of the company-specific risk be diversified away by investing in both American Woodmark and Libbey 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 Libbey into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Woodmark and Libbey Inc, you can compare the effects of market volatilities on American Woodmark and Libbey 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 Libbey. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Woodmark and Libbey.
Diversification Opportunities for American Woodmark and Libbey
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between American and Libbey is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding American Woodmark and Libbey Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Libbey Inc 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 Libbey. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Libbey Inc has no effect on the direction of American Woodmark i.e., American Woodmark and Libbey go up and down completely randomly.
Pair Corralation between American Woodmark and Libbey
If you would invest (100.00) in Libbey Inc on January 26, 2024 and sell it today you would earn a total of 100.00 from holding Libbey Inc or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
American Woodmark vs. Libbey Inc
Performance |
| Timeline |
| American Woodmark |
| Libbey Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
American Woodmark and Libbey Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Woodmark and Libbey
The main advantage of trading using opposite American Woodmark and Libbey positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Woodmark position performs unexpectedly, Libbey 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 Libbey will offset losses from the drop in Libbey's long position.| American Woodmark vs. FGI Industries | American Woodmark vs. Applied UV Preferred | American Woodmark vs. Aterian | American Woodmark vs. Energy Focu |
| Libbey vs. Diageo PLC ADR | Libbey vs. Willamette Valley Vineyards | Libbey vs. Japan Tobacco ADR | Libbey vs. Boston Beer |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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