Correlation Between Lincoln Electric and 26442CBC7
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By analyzing existing cross correlation between Lincoln Electric Holdings and DUK 345 15 APR 51, you can compare the effects of market volatilities on Lincoln Electric and 26442CBC7 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 26442CBC7. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lincoln Electric and 26442CBC7.
Diversification Opportunities for Lincoln Electric and 26442CBC7
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Lincoln and 26442CBC7 is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Lincoln Electric Holdings and DUK 345 15 APR 51 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DUK 345 15 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 26442CBC7. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DUK 345 15 has no effect on the direction of Lincoln Electric i.e., Lincoln Electric and 26442CBC7 go up and down completely randomly.
Pair Corralation between Lincoln Electric and 26442CBC7
Given the investment horizon of 90 days Lincoln Electric Holdings is expected to generate 2.31 times more return on investment than 26442CBC7. However, Lincoln Electric is 2.31 times more volatile than DUK 345 15 APR 51. It trades about 0.11 of its potential returns per unit of risk. DUK 345 15 APR 51 is currently generating about 0.09 per unit of risk. If you would invest 19,708 in Lincoln Electric Holdings on November 28, 2024 and sell it today you would earn a total of 1,069 from holding Lincoln Electric Holdings or generate 5.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 45.45% |
| Values | Daily Returns |
Lincoln Electric Holdings vs. DUK 345 15 APR 51
Performance |
| Timeline |
| Lincoln Electric Holdings |
| DUK 345 15 |
Lincoln Electric and 26442CBC7 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lincoln Electric and 26442CBC7
The main advantage of trading using opposite Lincoln Electric and 26442CBC7 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lincoln Electric position performs unexpectedly, 26442CBC7 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 26442CBC7 will offset losses from the drop in 26442CBC7's long position.| Lincoln Electric vs. Kennametal | Lincoln Electric vs. Toro Co | Lincoln Electric vs. Snap On | Lincoln Electric vs. RBC Bearings Incorporated |
| 26442CBC7 vs. Teleflex Incorporated | 26442CBC7 vs. Ryanair Holdings PLC | 26442CBC7 vs. Wizz Air Holdings | 26442CBC7 vs. Mayfair Gold 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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