Correlation Between Lakeland Industries and Companhia Paranaense
Can any of the company-specific risk be diversified away by investing in both Lakeland Industries and Companhia Paranaense 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 Companhia Paranaense into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lakeland Industries and Companhia Paranaense de, you can compare the effects of market volatilities on Lakeland Industries and Companhia Paranaense 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 Companhia Paranaense. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lakeland Industries and Companhia Paranaense.
Diversification Opportunities for Lakeland Industries and Companhia Paranaense
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Lakeland and Companhia is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Lakeland Industries and Companhia Paranaense de in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Companhia Paranaense 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 Companhia Paranaense. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Companhia Paranaense has no effect on the direction of Lakeland Industries i.e., Lakeland Industries and Companhia Paranaense go up and down completely randomly.
Pair Corralation between Lakeland Industries and Companhia Paranaense
Given the investment horizon of 90 days Lakeland Industries is expected to generate 0.95 times more return on investment than Companhia Paranaense. However, Lakeland Industries is 1.05 times less risky than Companhia Paranaense. It trades about 0.23 of its potential returns per unit of risk. Companhia Paranaense de is currently generating about -0.07 per unit of risk. If you would invest 1,941 in Lakeland Industries on August 31, 2024 and sell it today you would earn a total of 242.00 from holding Lakeland Industries or generate 12.47% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 95.65% |
Values | Daily Returns |
Lakeland Industries vs. Companhia Paranaense de
Performance |
Timeline |
Lakeland Industries |
Companhia Paranaense |
Lakeland Industries and Companhia Paranaense Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Lakeland Industries and Companhia Paranaense
The main advantage of trading using opposite Lakeland Industries and Companhia Paranaense positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lakeland Industries position performs unexpectedly, Companhia Paranaense 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 Companhia Paranaense will offset losses from the drop in Companhia Paranaense's long position.Lakeland Industries vs. Vince Holding Corp | Lakeland Industries vs. Oxford Industries | Lakeland Industries vs. Gildan Activewear | Lakeland Industries vs. Columbia Sportswear |
Companhia Paranaense vs. CT Real Estate | Companhia Paranaense vs. Montauk Renewables | Companhia Paranaense vs. Encore Capital Group | Companhia Paranaense vs. KeyCorp |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
Stocks Directory Find actively traded stocks across global markets | |
Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
Global Correlations Find global opportunities by holding instruments from different markets | |
Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |