Correlation Between Lincoln Electric and Kimco Realty
Can any of the company-specific risk be diversified away by investing in both Lincoln Electric and Kimco Realty 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 Lincoln Electric and Kimco Realty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lincoln Electric Holdings and Kimco Realty, you can compare the effects of market volatilities on Lincoln Electric and Kimco Realty 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 Lincoln Electric with a short position of Kimco Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lincoln Electric and Kimco Realty.
Diversification Opportunities for Lincoln Electric and Kimco Realty
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Lincoln and Kimco is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Lincoln Electric Holdings and Kimco Realty in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kimco Realty and Lincoln Electric 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 Lincoln Electric Holdings are associated (or correlated) with Kimco Realty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kimco Realty has no effect on the direction of Lincoln Electric i.e., Lincoln Electric and Kimco Realty go up and down completely randomly.
Pair Corralation between Lincoln Electric and Kimco Realty
Given the investment horizon of 90 days Lincoln Electric is expected to generate 1.22 times less return on investment than Kimco Realty. In addition to that, Lincoln Electric is 1.61 times more volatile than Kimco Realty. It trades about 0.03 of its total potential returns per unit of risk. Kimco Realty is currently generating about 0.05 per unit of volatility. If you would invest 4,683 in Kimco Realty on October 25, 2024 and sell it today you would earn a total of 1,316 from holding Kimco Realty or generate 28.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.39% |
| Values | Daily Returns |
Lincoln Electric Holdings vs. Kimco Realty
Performance |
| Timeline |
| Lincoln Electric Holdings |
| Kimco Realty |
Lincoln Electric and Kimco Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lincoln Electric and Kimco Realty
The main advantage of trading using opposite Lincoln Electric and Kimco Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lincoln Electric position performs unexpectedly, Kimco Realty 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 Kimco Realty will offset losses from the drop in Kimco Realty's long position.| Lincoln Electric vs. Kennametal | Lincoln Electric vs. Toro Co | Lincoln Electric vs. Snap On | Lincoln Electric vs. RBC Bearings Incorporated |
| Kimco Realty vs. HomeTrust Bancshares | Kimco Realty vs. Taylor Morn Home | Kimco Realty vs. ServiceNow | Kimco Realty vs. Lowes Companies |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |