Correlation Between Mink Therapeutics and Lincoln Electric
Can any of the company-specific risk be diversified away by investing in both Mink Therapeutics 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 Mink Therapeutics and Lincoln Electric into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mink Therapeutics and Lincoln Electric Holdings, you can compare the effects of market volatilities on Mink Therapeutics 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 Mink Therapeutics with a short position of Lincoln Electric. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mink Therapeutics and Lincoln Electric.
Diversification Opportunities for Mink Therapeutics and Lincoln Electric
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Mink and Lincoln is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Mink Therapeutics 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 Mink Therapeutics 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 Mink Therapeutics 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 Mink Therapeutics i.e., Mink Therapeutics and Lincoln Electric go up and down completely randomly.
Pair Corralation between Mink Therapeutics and Lincoln Electric
Given the investment horizon of 90 days Mink Therapeutics is expected to under-perform the Lincoln Electric. In addition to that, Mink Therapeutics is 3.49 times more volatile than Lincoln Electric Holdings. It trades about -0.01 of its total potential returns per unit of risk. Lincoln Electric Holdings is currently generating about 0.06 per unit of volatility. If you would invest 14,355 in Lincoln Electric Holdings on September 3, 2024 and sell it today you would earn a total of 7,493 from holding Lincoln Electric Holdings or generate 52.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mink Therapeutics vs. Lincoln Electric Holdings
Performance |
| Timeline |
| Mink Therapeutics |
| Lincoln Electric Holdings |
Mink Therapeutics and Lincoln Electric Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mink Therapeutics and Lincoln Electric
The main advantage of trading using opposite Mink Therapeutics and Lincoln Electric positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mink Therapeutics 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.| Mink Therapeutics vs. Affimed NV | Mink Therapeutics vs. Adaptimmune Therapeutics Plc | Mink Therapeutics vs. Sangamo Therapeutics | Mink Therapeutics vs. Day One Biopharmaceuticals |
| Lincoln Electric vs. Kennametal | Lincoln Electric vs. Toro Co | Lincoln Electric vs. Snap On | Lincoln Electric vs. Timken Company |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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