Correlation Between SUPER HI and Lincoln Electric
Can any of the company-specific risk be diversified away by investing in both SUPER HI and Lincoln Electric 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 SUPER HI and Lincoln Electric into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SUPER HI INTERNATIONAL and Lincoln Electric Holdings, you can compare the effects of market volatilities on SUPER HI and Lincoln Electric 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 SUPER HI with a short position of Lincoln Electric. Check out your portfolio center. Please also check ongoing floating volatility patterns of SUPER HI and Lincoln Electric.
Diversification Opportunities for SUPER HI and Lincoln Electric
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SUPER and Lincoln is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding SUPER HI INTERNATIONAL and Lincoln Electric Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lincoln Electric Holdings and SUPER HI 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 SUPER HI INTERNATIONAL are associated (or correlated) with Lincoln Electric. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lincoln Electric Holdings has no effect on the direction of SUPER HI i.e., SUPER HI and Lincoln Electric go up and down completely randomly.
Pair Corralation between SUPER HI and Lincoln Electric
Considering the 90-day investment horizon SUPER HI INTERNATIONAL is expected to under-perform the Lincoln Electric. But the stock apears to be less risky and, when comparing its historical volatility, SUPER HI INTERNATIONAL is 1.07 times less risky than Lincoln Electric. The stock trades about -0.14 of its potential returns per unit of risk. The Lincoln Electric Holdings is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 19,584 in Lincoln Electric Holdings on August 28, 2024 and sell it today you would earn a total of 2,410 from holding Lincoln Electric Holdings or generate 12.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SUPER HI INTERNATIONAL vs. Lincoln Electric Holdings
Performance |
| Timeline |
| SUPER HI INTERNATIONAL |
| Lincoln Electric Holdings |
SUPER HI and Lincoln Electric Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SUPER HI and Lincoln Electric
The main advantage of trading using opposite SUPER HI and Lincoln Electric positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SUPER HI position performs unexpectedly, Lincoln Electric 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 Lincoln Electric will offset losses from the drop in Lincoln Electric's long position.| SUPER HI vs. Lincoln Electric Holdings | SUPER HI vs. Hillman Solutions Corp | SUPER HI vs. Tesla Inc | SUPER HI vs. World Houseware Limited |
| Lincoln Electric vs. Kennametal | Lincoln Electric vs. Toro Co | Lincoln Electric vs. Snap On | Lincoln Electric vs. RBC Bearings 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |