Correlation Between Lakeland Industries and Superior Plus
Can any of the company-specific risk be diversified away by investing in both Lakeland Industries and Superior Plus 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 Industries and Superior Plus into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lakeland Industries and Superior Plus Corp, you can compare the effects of market volatilities on Lakeland Industries and Superior Plus 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 Industries with a short position of Superior Plus. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lakeland Industries and Superior Plus.
Diversification Opportunities for Lakeland Industries and Superior Plus
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lakeland and Superior is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Lakeland Industries and Superior Plus Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Superior Plus Corp and Lakeland Industries 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 Industries are associated (or correlated) with Superior Plus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Superior Plus Corp has no effect on the direction of Lakeland Industries i.e., Lakeland Industries and Superior Plus go up and down completely randomly.
Pair Corralation between Lakeland Industries and Superior Plus
Assuming the 90 days horizon Lakeland Industries is expected to generate 1.09 times more return on investment than Superior Plus. However, Lakeland Industries is 1.09 times more volatile than Superior Plus Corp. It trades about 0.03 of its potential returns per unit of risk. Superior Plus Corp is currently generating about -0.07 per unit of risk. If you would invest 2,113 in Lakeland Industries on September 19, 2024 and sell it today you would earn a total of 147.00 from holding Lakeland Industries or generate 6.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.22% |
| Values | Daily Returns |
Lakeland Industries vs. Superior Plus Corp
Performance |
| Timeline |
| Lakeland Industries |
| Superior Plus Corp |
Lakeland Industries and Superior Plus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lakeland Industries and Superior Plus
The main advantage of trading using opposite Lakeland Industries and Superior Plus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lakeland Industries position performs unexpectedly, Superior Plus 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 Superior Plus will offset losses from the drop in Superior Plus' long position.| Lakeland Industries vs. CDL INVESTMENT | Lakeland Industries vs. INTERCONT HOTELS | Lakeland Industries vs. Sunstone Hotel Investors | Lakeland Industries vs. Pebblebrook Hotel Trust |
| Superior Plus vs. Internet Thailand PCL | Superior Plus vs. SPORTING | Superior Plus vs. Spirent Communications plc | Superior Plus vs. Transport International Holdings |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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