Correlation Between Lifetime Brands and Orion Energy
Can any of the company-specific risk be diversified away by investing in both Lifetime Brands and Orion Energy 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 Orion Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lifetime Brands and Orion Energy Systems, you can compare the effects of market volatilities on Lifetime Brands and Orion Energy 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 Orion Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lifetime Brands and Orion Energy.
Diversification Opportunities for Lifetime Brands and Orion Energy
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lifetime and Orion is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Lifetime Brands and Orion Energy Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Orion Energy Systems 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 Orion Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Orion Energy Systems has no effect on the direction of Lifetime Brands i.e., Lifetime Brands and Orion Energy go up and down completely randomly.
Pair Corralation between Lifetime Brands and Orion Energy
Given the investment horizon of 90 days Lifetime Brands is expected to generate 0.98 times more return on investment than Orion Energy. However, Lifetime Brands is 1.02 times less risky than Orion Energy. It trades about 0.11 of its potential returns per unit of risk. Orion Energy Systems is currently generating about -0.23 per unit of risk. If you would invest 552.00 in Lifetime Brands on August 31, 2024 and sell it today you would earn a total of 34.50 from holding Lifetime Brands or generate 6.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Lifetime Brands vs. Orion Energy Systems
Performance |
| Timeline |
| Lifetime Brands |
| Orion Energy Systems |
Lifetime Brands and Orion Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lifetime Brands and Orion Energy
The main advantage of trading using opposite Lifetime Brands and Orion Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lifetime Brands position performs unexpectedly, Orion Energy 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 Orion Energy will offset losses from the drop in Orion Energy'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 |
| Orion Energy vs. Plug Power | Orion Energy vs. FREYR Battery SA | Orion Energy vs. FuelCell Energy | Orion Energy vs. Enovix Corp |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |