Lincoln Electric Correlations

LECO Stock

USD 213.52 5.01 2.40%

The current 90-days correlation between Lincoln Electric Holdings and Kennametal is 0.66 (i.e., Poor diversification). A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Lincoln Electric moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Lincoln Electric Holdings moves in either direction, the perfectly negatively correlated security will move in the opposite direction.

Lincoln Electric Correlation With Market

Poor diversification

The correlation between Lincoln Electric Holdings and DJI is 0.71 (i.e., Poor diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Lincoln Electric Holdings and DJI in the same portfolio, assuming nothing else is changed.

Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Lincoln Electric Holdings. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in main economic indicators.

Moving together with Lincoln Stock

0.73	MKTAY	Makita Corp	Pair Corr
0.69	CVR	Chicago Rivet Machine	Pair Corr
0.85	KMT	Kennametal	Pair Corr
0.7	RBC	RBC Bearings	Pair Corr
0.86	SNA	Snap On	Pair Corr
0.73	HLMN	Hillman Solutions Corp	Pair Corr
0.74	B	Barnes Group	Pair Corr
0.7	G	Genpact Limited	Pair Corr
0.79	J	Jacobs Solutions	Pair Corr
0.87	R	Ryder System	Pair Corr
0.8	AL	Air Lease	Pair Corr
0.8	AZ	A2Z Smart Technologies	Pair Corr
0.73	BR	Broadridge Financial	Pair Corr
0.82	BV	BrightView Holdings	Pair Corr
0.86	CR	Crane Company	Pair Corr
0.88	CW	Curtiss Wright	Pair Corr
0.61	EH	Ehang Holdings	Pair Corr
0.77	IR	Ingersoll Rand	Pair Corr
0.7	KC	Kingsoft Cloud Holdings Trending	Pair Corr

Moving against Lincoln Stock

0.52	SWK	Stanley Black Decker	Pair Corr
0.36	QEPC	QEP Co Inc	Pair Corr
0.35	EML	Eastern	Pair Corr
0.75	CP	Canadian Pacific Railway	Pair Corr
0.46	BA	Boeing Fiscal Year End 29th of January 2025	Pair Corr
0.43	FA	First Advantage Corp	Pair Corr
0.49	MG	Mistras Group	Pair Corr
0.48	ST	Sensata Technologies	Pair Corr
0.46	RR	Richtech Robotics Class	Pair Corr
0.46	SB	Safe Bulkers	Pair Corr
0.45	GP	GreenPower Motor	Pair Corr
0.31	HY	Hyster Yale Materials	Pair Corr

Related Correlations Analysis

	KMT	TTC	SNA	RBC	TKR	RBCP	EML	SCX	HLMN	SWK
KMT		-0.03	0.8	0.9	-0.61	0.05	-0.6	0.48	0.69	-0.67	KMT
TTC	-0.03		-0.42	0.09	0.22	0.13	0.01	0.03	-0.36	0.26	TTC
SNA	0.8	-0.42		0.66	-0.48	0.1	-0.45	0.34	0.81	-0.71	SNA
RBC	0.9	0.09	0.66		-0.6	-0.14	-0.63	0.62	0.57	-0.6	RBC
TKR	-0.61	0.22	-0.48	-0.6		0.04	0.82	-0.37	-0.21	0.78	TKR
RBCP	0.05	0.13	0.1	-0.14	0.04		-0.06	-0.37	-0.12	-0.15	RBCP
EML	-0.6	0.01	-0.45	-0.63	0.82	-0.06		-0.28	-0.07	0.86	EML
SCX	0.48	0.03	0.34	0.62	-0.37	-0.37	-0.28		0.38	-0.25	SCX
HLMN	0.69	-0.36	0.81	0.57	-0.21	-0.12	-0.07	0.38		-0.31	HLMN
SWK	-0.67	0.26	-0.71	-0.6	0.78	-0.15	0.86	-0.25	-0.31		SWK
	KMT	TTC	SNA	RBC	TKR	RBCP	EML	SCX	HLMN	SWK

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Correlation Matchups

Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.

High positive correlations

RBC	+ 0.9	KMT
SWK	+ 0.86	EML
EML	+ 0.82	TKR
HLMN	+ 0.81	SNA
SNA	+ 0.8	KMT
SWK	+ 0.78	TKR

High negative correlations

SWK	- 0.71	SNA
SWK	- 0.67	KMT
EML	- 0.63	RBC
TKR	- 0.61	KMT
SWK	- 0.6	RBC
TKR	- 0.6	RBC

Risk-Adjusted Indicators

There is a big difference between Lincoln Stock performing well and Lincoln Electric Company doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze Lincoln Electric's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.

	Mean Deviation	Jensen Alpha	Sortino Ratio	Treynor Ratio	Semi Deviation	Expected Shortfall	Potential Upside	Value @Risk	Maximum Drawdown
KMT	1.45	(0.07)	0.08	0.10	1.50	(1.58)	2.76	(2.06)	23.53
TTC	1.16	(0.19)	0.00	(0.08)	0.00	0.00	1.94	(2.19)	11.13
SNA	1.00	0.28	0.41	0.34	0.00	(1.31)	2.22	(0.96)	10.93
RBC	1.06	0.04	0.09	0.15	0.94	(1.18)	2.12	(1.98)	11.43
TKR	1.42	(0.29)	0.00	(0.06)	0.00	0.00	2.64	(2.47)	16.50
RBCP	0.98	(0.07)	0.00	(0.66)	0.00	0.00	2.00	(3.08)	7.74
EML	1.73	(0.12)	0.00	(0.04)	0.00	0.00	4.10	(3.42)	12.25
SCX	2.52	0.38	0.06	(0.45)	2.93	(2.75)	6.74	(5.00)	16.39
HLMN	1.33	0.14	0.13	0.22	1.15	(1.60)	3.36	(2.18)	7.63
SWK	1.22	(0.19)	0.00	(0.24)	0.00	0.00	2.60	(1.86)	12.37

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