Correlation Between Lincoln Electric and Praxsyn Corp
Can any of the company-specific risk be diversified away by investing in both Lincoln Electric and Praxsyn Corp 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 Praxsyn Corp 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 Praxsyn Corp, you can compare the effects of market volatilities on Lincoln Electric and Praxsyn Corp 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 Praxsyn Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lincoln Electric and Praxsyn Corp.
Diversification Opportunities for Lincoln Electric and Praxsyn Corp
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Lincoln and Praxsyn is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Lincoln Electric Holdings and Praxsyn Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Praxsyn Corp 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 Praxsyn Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Praxsyn Corp has no effect on the direction of Lincoln Electric i.e., Lincoln Electric and Praxsyn Corp go up and down completely randomly.
Pair Corralation between Lincoln Electric and Praxsyn Corp
If you would invest (100.00) in Praxsyn Corp on September 15, 2024 and sell it today you would earn a total of 100.00 from holding Praxsyn Corp or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 0.0% |
| Values | Daily Returns |
Lincoln Electric Holdings vs. Praxsyn Corp
Performance |
| Timeline |
| Lincoln Electric Holdings |
| Praxsyn Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Lincoln Electric and Praxsyn Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lincoln Electric and Praxsyn Corp
The main advantage of trading using opposite Lincoln Electric and Praxsyn Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lincoln Electric position performs unexpectedly, Praxsyn Corp 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 Praxsyn Corp will offset losses from the drop in Praxsyn Corp's long position.| Lincoln Electric vs. Kennametal | Lincoln Electric vs. Toro Co | Lincoln Electric vs. Snap On | Lincoln Electric vs. RBC Bearings Incorporated |
| Praxsyn Corp vs. Artisan Partners Asset | Praxsyn Corp vs. Siriuspoint | Praxsyn Corp vs. Skechers USA | Praxsyn Corp vs. Lincoln Electric Holdings |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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