Correlation Between H M and Lakeland Industries
Can any of the company-specific risk be diversified away by investing in both H M and Lakeland Industries 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 H M and Lakeland Industries into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between H M Hennes and Lakeland Industries, you can compare the effects of market volatilities on H M and Lakeland Industries 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 H M with a short position of Lakeland Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of H M and Lakeland Industries.
Diversification Opportunities for H M and Lakeland Industries
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between HNNMY and Lakeland is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding H M Hennes and Lakeland Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lakeland Industries and H M 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 H M Hennes are associated (or correlated) with Lakeland Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lakeland Industries has no effect on the direction of H M i.e., H M and Lakeland Industries go up and down completely randomly.
Pair Corralation between H M and Lakeland Industries
Assuming the 90 days horizon H M Hennes is expected to under-perform the Lakeland Industries. But the pink sheet apears to be less risky and, when comparing its historical volatility, H M Hennes is 1.32 times less risky than Lakeland Industries. The pink sheet trades about -0.01 of its potential returns per unit of risk. The Lakeland Industries is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 1,485 in Lakeland Industries on August 27, 2024 and sell it today you would earn a total of 676.00 from holding Lakeland Industries or generate 45.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
H M Hennes vs. Lakeland Industries
Performance |
| Timeline |
| H M Hennes |
| Lakeland Industries |
H M and Lakeland Industries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with H M and Lakeland Industries
The main advantage of trading using opposite H M and Lakeland Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if H M position performs unexpectedly, Lakeland Industries 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 Lakeland Industries will offset losses from the drop in Lakeland Industries' long position.| H M vs. Superior Uniform Group | H M vs. Lakeland Industries | H M vs. Jerash Holdings | H M vs. G III Apparel Group |
| Lakeland Industries vs. Vince Holding Corp | Lakeland Industries vs. Oxford Industries | Lakeland Industries vs. Gildan Activewear | Lakeland Industries vs. Columbia Sportswear |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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