Correlation Between Lincoln Electric and 575718AG6
Specify exactly 2 symbols:
By analyzing existing cross correlation between Lincoln Electric Holdings and US575718AG63, you can compare the effects of market volatilities on Lincoln Electric and 575718AG6 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 575718AG6. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lincoln Electric and 575718AG6.
Diversification Opportunities for Lincoln Electric and 575718AG6
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lincoln and 575718AG6 is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Lincoln Electric Holdings and US575718AG63 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on US575718AG63 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 575718AG6. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of US575718AG63 has no effect on the direction of Lincoln Electric i.e., Lincoln Electric and 575718AG6 go up and down completely randomly.
Pair Corralation between Lincoln Electric and 575718AG6
Given the investment horizon of 90 days Lincoln Electric Holdings is expected to generate 0.67 times more return on investment than 575718AG6. However, Lincoln Electric Holdings is 1.49 times less risky than 575718AG6. It trades about 0.1 of its potential returns per unit of risk. US575718AG63 is currently generating about -0.18 per unit of risk. If you would invest 19,357 in Lincoln Electric Holdings on September 13, 2024 and sell it today you would earn a total of 1,551 from holding Lincoln Electric Holdings or generate 8.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 57.14% |
| Values | Daily Returns |
Lincoln Electric Holdings vs. US575718AG63
Performance |
| Timeline |
| Lincoln Electric Holdings |
| US575718AG63 |
Lincoln Electric and 575718AG6 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lincoln Electric and 575718AG6
The main advantage of trading using opposite Lincoln Electric and 575718AG6 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lincoln Electric position performs unexpectedly, 575718AG6 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 575718AG6 will offset losses from the drop in 575718AG6's long position.| Lincoln Electric vs. Kennametal | Lincoln Electric vs. Toro Co | Lincoln Electric vs. Snap On | Lincoln Electric vs. RBC Bearings Incorporated |
| 575718AG6 vs. AEP TEX INC | 575718AG6 vs. US BANK NATIONAL | 575718AG6 vs. Alphabet Inc Class C | 575718AG6 vs. InMode |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |