Correlation Between Lakeland Financial and AIB Group
Can any of the company-specific risk be diversified away by investing in both Lakeland Financial and AIB Group 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 Lakeland Financial and AIB Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lakeland Financial and AIB Group PLC, you can compare the effects of market volatilities on Lakeland Financial and AIB Group 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 Lakeland Financial with a short position of AIB Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lakeland Financial and AIB Group.
Diversification Opportunities for Lakeland Financial and AIB Group
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Lakeland and AIB is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Lakeland Financial and AIB Group PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AIB Group PLC and Lakeland Financial 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 Lakeland Financial are associated (or correlated) with AIB Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AIB Group PLC has no effect on the direction of Lakeland Financial i.e., Lakeland Financial and AIB Group go up and down completely randomly.
Pair Corralation between Lakeland Financial and AIB Group
If you would invest 5,964 in Lakeland Financial on September 3, 2024 and sell it today you would earn a total of 1,414 from holding Lakeland Financial or generate 23.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 0.8% |
| Values | Daily Returns |
Lakeland Financial vs. AIB Group PLC
Performance |
| Timeline |
| Lakeland Financial |
| AIB Group PLC |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Lakeland Financial and AIB Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lakeland Financial and AIB Group
The main advantage of trading using opposite Lakeland Financial and AIB Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lakeland Financial position performs unexpectedly, AIB Group 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 AIB Group will offset losses from the drop in AIB Group's long position.| Lakeland Financial vs. Home Bancorp | Lakeland Financial vs. Heritage Financial | Lakeland Financial vs. First Northwest Bancorp | Lakeland Financial vs. HomeTrust Bancshares |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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