Correlation Between Lakeland Industries and Tsingtao Brewery
Can any of the company-specific risk be diversified away by investing in both Lakeland Industries and Tsingtao Brewery 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 Tsingtao Brewery into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lakeland Industries and Tsingtao Brewery, you can compare the effects of market volatilities on Lakeland Industries and Tsingtao Brewery 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 Tsingtao Brewery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lakeland Industries and Tsingtao Brewery.
Diversification Opportunities for Lakeland Industries and Tsingtao Brewery
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Lakeland and Tsingtao is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Lakeland Industries and Tsingtao Brewery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tsingtao Brewery 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 Tsingtao Brewery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tsingtao Brewery has no effect on the direction of Lakeland Industries i.e., Lakeland Industries and Tsingtao Brewery go up and down completely randomly.
Pair Corralation between Lakeland Industries and Tsingtao Brewery
If you would invest 496.00 in Tsingtao Brewery on October 13, 2024 and sell it today you would earn a total of 139.00 from holding Tsingtao Brewery or generate 28.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.2% |
| Values | Daily Returns |
Lakeland Industries vs. Tsingtao Brewery
Performance |
| Timeline |
| Lakeland Industries |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Tsingtao Brewery |
Lakeland Industries and Tsingtao Brewery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lakeland Industries and Tsingtao Brewery
The main advantage of trading using opposite Lakeland Industries and Tsingtao Brewery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lakeland Industries position performs unexpectedly, Tsingtao Brewery 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 Tsingtao Brewery will offset losses from the drop in Tsingtao Brewery's long position.| Lakeland Industries vs. GRIFFIN MINING LTD | Lakeland Industries vs. OURGAME INTHOLDL 00005 | Lakeland Industries vs. BRAGG GAMING GRP | Lakeland Industries vs. Calibre Mining Corp |
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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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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