Correlation Between Lakeland Industries and Vince Holding
Can any of the company-specific risk be diversified away by investing in both Lakeland Industries and Vince Holding 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 Vince Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lakeland Industries and Vince Holding Corp, you can compare the effects of market volatilities on Lakeland Industries and Vince Holding 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 Vince Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lakeland Industries and Vince Holding.
Diversification Opportunities for Lakeland Industries and Vince Holding
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Lakeland and Vince is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Lakeland Industries and Vince Holding Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vince Holding Corp 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 Vince Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vince Holding Corp has no effect on the direction of Lakeland Industries i.e., Lakeland Industries and Vince Holding go up and down completely randomly.
Pair Corralation between Lakeland Industries and Vince Holding
Given the investment horizon of 90 days Lakeland Industries is expected to generate 3.36 times less return on investment than Vince Holding. But when comparing it to its historical volatility, Lakeland Industries is 8.95 times less risky than Vince Holding. It trades about 0.33 of its potential returns per unit of risk. Vince Holding Corp is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 278.00 in Vince Holding Corp on October 20, 2024 and sell it today you would earn a total of 62.00 from holding Vince Holding Corp or generate 22.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Lakeland Industries vs. Vince Holding Corp
Performance |
| Timeline |
| Lakeland Industries |
| Vince Holding Corp |
Lakeland Industries and Vince Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lakeland Industries and Vince Holding
The main advantage of trading using opposite Lakeland Industries and Vince Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lakeland Industries position performs unexpectedly, Vince Holding 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 Vince Holding will offset losses from the drop in Vince Holding's long position.| Lakeland Industries vs. Vince Holding Corp | Lakeland Industries vs. Oxford Industries | Lakeland Industries vs. Gildan Activewear | Lakeland Industries vs. Columbia Sportswear |
| Vince Holding vs. Ermenegildo Zegna NV | Vince Holding vs. Columbia Sportswear | Vince Holding vs. Gildan Activewear | Vince Holding vs. G III Apparel Group |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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