Correlation Between Lincoln Electric and SOCGEN
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By analyzing existing cross correlation between Lincoln Electric Holdings and SOCGEN 4677 15 JUN 27, you can compare the effects of market volatilities on Lincoln Electric and SOCGEN 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 SOCGEN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lincoln Electric and SOCGEN.
Diversification Opportunities for Lincoln Electric and SOCGEN
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Lincoln and SOCGEN is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Lincoln Electric Holdings and SOCGEN 4677 15 JUN 27 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SOCGEN 4677 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 SOCGEN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SOCGEN 4677 15 has no effect on the direction of Lincoln Electric i.e., Lincoln Electric and SOCGEN go up and down completely randomly.
Pair Corralation between Lincoln Electric and SOCGEN
Given the investment horizon of 90 days Lincoln Electric Holdings is expected to generate 3.3 times more return on investment than SOCGEN. However, Lincoln Electric is 3.3 times more volatile than SOCGEN 4677 15 JUN 27. It trades about 0.2 of its potential returns per unit of risk. SOCGEN 4677 15 JUN 27 is currently generating about -0.3 per unit of risk. If you would invest 19,880 in Lincoln Electric Holdings on September 4, 2024 and sell it today you would earn a total of 1,874 from holding Lincoln Electric Holdings or generate 9.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 38.1% |
| Values | Daily Returns |
Lincoln Electric Holdings vs. SOCGEN 4677 15 JUN 27
Performance |
| Timeline |
| Lincoln Electric Holdings |
| SOCGEN 4677 15 |
Lincoln Electric and SOCGEN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lincoln Electric and SOCGEN
The main advantage of trading using opposite Lincoln Electric and SOCGEN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lincoln Electric position performs unexpectedly, SOCGEN 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 SOCGEN will offset losses from the drop in SOCGEN's long position.| Lincoln Electric vs. Kennametal | Lincoln Electric vs. Toro Co | Lincoln Electric vs. Snap On | Lincoln Electric vs. RBC Bearings Incorporated |
| SOCGEN vs. Duluth Holdings | SOCGEN vs. Figs Inc | SOCGEN vs. Lincoln Electric Holdings | SOCGEN vs. Church Dwight |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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