Correlation Between Lakeland Industries and Diamond Estates
Can any of the company-specific risk be diversified away by investing in both Lakeland Industries and Diamond Estates 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 Lakeland Industries and Diamond Estates into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lakeland Industries and Diamond Estates Wines, you can compare the effects of market volatilities on Lakeland Industries and Diamond Estates 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 Lakeland Industries with a short position of Diamond Estates. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lakeland Industries and Diamond Estates.
Diversification Opportunities for Lakeland Industries and Diamond Estates
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Lakeland and Diamond is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Lakeland Industries and Diamond Estates Wines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Diamond Estates Wines and Lakeland Industries 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 Lakeland Industries are associated (or correlated) with Diamond Estates. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Diamond Estates Wines has no effect on the direction of Lakeland Industries i.e., Lakeland Industries and Diamond Estates go up and down completely randomly.
Pair Corralation between Lakeland Industries and Diamond Estates
Given the investment horizon of 90 days Lakeland Industries is expected to generate 0.67 times more return on investment than Diamond Estates. However, Lakeland Industries is 1.48 times less risky than Diamond Estates. It trades about 0.05 of its potential returns per unit of risk. Diamond Estates Wines is currently generating about -0.06 per unit of risk. If you would invest 1,341 in Lakeland Industries on August 24, 2024 and sell it today you would earn a total of 820.00 from holding Lakeland Industries or generate 61.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lakeland Industries vs. Diamond Estates Wines
Performance |
| Timeline |
| Lakeland Industries |
| Diamond Estates Wines |
Lakeland Industries and Diamond Estates Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lakeland Industries and Diamond Estates
The main advantage of trading using opposite Lakeland Industries and Diamond Estates positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lakeland Industries position performs unexpectedly, Diamond Estates 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 Diamond Estates will offset losses from the drop in Diamond Estates' long position.| Lakeland Industries vs. Vince Holding Corp | Lakeland Industries vs. Oxford Industries | Lakeland Industries vs. Gildan Activewear | Lakeland Industries vs. Columbia Sportswear |
| Diamond Estates vs. Embotelladora Andina SA | Diamond Estates vs. Signet International Holdings | Diamond Estates vs. National Beverage Corp | Diamond Estates vs. PT Astra International |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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