Correlation Between Lifetime Brands and Hamilton Beach
Can any of the company-specific risk be diversified away by investing in both Lifetime Brands and Hamilton Beach 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 Lifetime Brands and Hamilton Beach into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lifetime Brands and Hamilton Beach Brands, you can compare the effects of market volatilities on Lifetime Brands and Hamilton Beach 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 Lifetime Brands with a short position of Hamilton Beach. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lifetime Brands and Hamilton Beach.
Diversification Opportunities for Lifetime Brands and Hamilton Beach
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Lifetime and Hamilton is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Lifetime Brands and Hamilton Beach Brands in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hamilton Beach Brands and Lifetime Brands 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 Lifetime Brands are associated (or correlated) with Hamilton Beach. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hamilton Beach Brands has no effect on the direction of Lifetime Brands i.e., Lifetime Brands and Hamilton Beach go up and down completely randomly.
Pair Corralation between Lifetime Brands and Hamilton Beach
Given the investment horizon of 90 days Lifetime Brands is expected to generate 1.94 times less return on investment than Hamilton Beach. In addition to that, Lifetime Brands is 1.03 times more volatile than Hamilton Beach Brands. It trades about 0.03 of its total potential returns per unit of risk. Hamilton Beach Brands is currently generating about 0.06 per unit of volatility. If you would invest 1,016 in Hamilton Beach Brands on August 31, 2024 and sell it today you would earn a total of 921.00 from holding Hamilton Beach Brands or generate 90.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lifetime Brands vs. Hamilton Beach Brands
Performance |
| Timeline |
| Lifetime Brands |
| Hamilton Beach Brands |
Lifetime Brands and Hamilton Beach Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lifetime Brands and Hamilton Beach
The main advantage of trading using opposite Lifetime Brands and Hamilton Beach positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lifetime Brands position performs unexpectedly, Hamilton Beach 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 Hamilton Beach will offset losses from the drop in Hamilton Beach's long position.| Lifetime Brands vs. Fundamental Global | Lifetime Brands vs. Yoshitsu Co Ltd | Lifetime Brands vs. Hour Loop | Lifetime Brands vs. Direct Digital Holdings |
| Hamilton Beach vs. Bassett Furniture Industries | Hamilton Beach vs. Flexsteel Industries | Hamilton Beach vs. Natuzzi SpA | Hamilton Beach vs. La Z Boy Incorporated |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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