Correlation Between Lakeland Industries and Zoom Video
Can any of the company-specific risk be diversified away by investing in both Lakeland Industries and Zoom Video 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 Zoom Video into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lakeland Industries and Zoom Video Communications, you can compare the effects of market volatilities on Lakeland Industries and Zoom Video 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 Zoom Video. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lakeland Industries and Zoom Video.
Diversification Opportunities for Lakeland Industries and Zoom Video
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Lakeland and Zoom is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Lakeland Industries and Zoom Video Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zoom Video Communications 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 Zoom Video. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zoom Video Communications has no effect on the direction of Lakeland Industries i.e., Lakeland Industries and Zoom Video go up and down completely randomly.
Pair Corralation between Lakeland Industries and Zoom Video
Given the investment horizon of 90 days Lakeland Industries is expected to generate 0.8 times more return on investment than Zoom Video. However, Lakeland Industries is 1.26 times less risky than Zoom Video. It trades about 0.41 of its potential returns per unit of risk. Zoom Video Communications is currently generating about 0.18 per unit of risk. If you would invest 1,856 in Lakeland Industries on September 1, 2024 and sell it today you would earn a total of 408.00 from holding Lakeland Industries or generate 21.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lakeland Industries vs. Zoom Video Communications
Performance |
| Timeline |
| Lakeland Industries |
| Zoom Video Communications |
Lakeland Industries and Zoom Video Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lakeland Industries and Zoom Video
The main advantage of trading using opposite Lakeland Industries and Zoom Video positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lakeland Industries position performs unexpectedly, Zoom Video 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 Zoom Video will offset losses from the drop in Zoom Video's long position.| Lakeland Industries vs. Vince Holding Corp | Lakeland Industries vs. Oxford Industries | Lakeland Industries vs. Gildan Activewear | Lakeland Industries vs. Columbia Sportswear |
| Zoom Video vs. Ke Holdings | Zoom Video vs. nCino Inc | Zoom Video vs. Kingsoft Cloud Holdings | Zoom Video vs. Jfrog |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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