Correlation Between Lincoln Electric and TradeUP Acquisition
Can any of the company-specific risk be diversified away by investing in both Lincoln Electric and TradeUP Acquisition 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 TradeUP Acquisition 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 TradeUP Acquisition Corp, you can compare the effects of market volatilities on Lincoln Electric and TradeUP Acquisition 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 TradeUP Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lincoln Electric and TradeUP Acquisition.
Diversification Opportunities for Lincoln Electric and TradeUP Acquisition
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Lincoln and TradeUP is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Lincoln Electric Holdings and TradeUP Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TradeUP Acquisition 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 TradeUP Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TradeUP Acquisition Corp has no effect on the direction of Lincoln Electric i.e., Lincoln Electric and TradeUP Acquisition go up and down completely randomly.
Pair Corralation between Lincoln Electric and TradeUP Acquisition
If you would invest 19,245 in Lincoln Electric Holdings on September 15, 2024 and sell it today you would earn a total of 1,135 from holding Lincoln Electric Holdings or generate 5.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 0.37% |
| Values | Daily Returns |
Lincoln Electric Holdings vs. TradeUP Acquisition Corp
Performance |
| Timeline |
| Lincoln Electric Holdings |
| TradeUP Acquisition Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Lincoln Electric and TradeUP Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lincoln Electric and TradeUP Acquisition
The main advantage of trading using opposite Lincoln Electric and TradeUP Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lincoln Electric position performs unexpectedly, TradeUP Acquisition 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 TradeUP Acquisition will offset losses from the drop in TradeUP Acquisition's long position.| Lincoln Electric vs. Kennametal | Lincoln Electric vs. Toro Co | Lincoln Electric vs. Snap On | Lincoln Electric vs. RBC Bearings Incorporated |
| TradeUP Acquisition vs. Pearson PLC ADR | TradeUP Acquisition vs. Lincoln Electric Holdings | TradeUP Acquisition vs. Coursera | TradeUP Acquisition vs. Mannatech 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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