Correlation Between Lakeland Industries and H M
Can any of the company-specific risk be diversified away by investing in both Lakeland Industries and H M 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 H M into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lakeland Industries and H M Hennes, you can compare the effects of market volatilities on Lakeland Industries and H M 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 H M. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lakeland Industries and H M.
Diversification Opportunities for Lakeland Industries and H M
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Lakeland and HMRZF is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Lakeland Industries and H M Hennes in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on H M Hennes 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 H M. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of H M Hennes has no effect on the direction of Lakeland Industries i.e., Lakeland Industries and H M go up and down completely randomly.
Pair Corralation between Lakeland Industries and H M
Given the investment horizon of 90 days Lakeland Industries is expected to under-perform the H M. In addition to that, Lakeland Industries is 1.54 times more volatile than H M Hennes. It trades about -0.1 of its total potential returns per unit of risk. H M Hennes is currently generating about 0.26 per unit of volatility. If you would invest 1,319 in H M Hennes on November 18, 2024 and sell it today you would earn a total of 156.00 from holding H M Hennes or generate 11.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lakeland Industries vs. H M Hennes
Performance |
| Timeline |
| Lakeland Industries |
| H M Hennes |
Lakeland Industries and H M Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lakeland Industries and H M
The main advantage of trading using opposite Lakeland Industries and H M positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lakeland Industries position performs unexpectedly, H M 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 H M will offset losses from the drop in H M's long position.| 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |