Correlation Between LL Flooring and Kirklands
Can any of the company-specific risk be diversified away by investing in both LL Flooring and Kirklands 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 LL Flooring and Kirklands into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LL Flooring Holdings and Kirklands, you can compare the effects of market volatilities on LL Flooring and Kirklands 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 LL Flooring with a short position of Kirklands. Check out your portfolio center. Please also check ongoing floating volatility patterns of LL Flooring and Kirklands.
Diversification Opportunities for LL Flooring and Kirklands
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between LL Flooring and Kirklands is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding LL Flooring Holdings and Kirklands in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kirklands and LL Flooring 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 LL Flooring Holdings are associated (or correlated) with Kirklands. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kirklands has no effect on the direction of LL Flooring i.e., LL Flooring and Kirklands go up and down completely randomly.
Pair Corralation between LL Flooring and Kirklands
If you would invest 162.00 in Kirklands on August 28, 2024 and sell it today you would earn a total of 9.00 from holding Kirklands or generate 5.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
LL Flooring Holdings vs. Kirklands
Performance |
| Timeline |
| LL Flooring Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Kirklands |
LL Flooring and Kirklands Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LL Flooring and Kirklands
The main advantage of trading using opposite LL Flooring and Kirklands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LL Flooring position performs unexpectedly, Kirklands 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 Kirklands will offset losses from the drop in Kirklands' long position.| LL Flooring vs. Haverty Furniture Companies | LL Flooring vs. Arhaus Inc | LL Flooring vs. Tile Shop Holdings | LL Flooring vs. Floor Decor Holdings |
| Kirklands vs. Floor Decor Holdings | Kirklands vs. Haverty Furniture Companies | Kirklands vs. Tile Shop Holdings | Kirklands vs. Arhaus Inc |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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