Correlation Between Limbach Holdings and Concrete Pumping
Can any of the company-specific risk be diversified away by investing in both Limbach Holdings and Concrete Pumping 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 Limbach Holdings and Concrete Pumping into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Limbach Holdings and Concrete Pumping Holdings, you can compare the effects of market volatilities on Limbach Holdings and Concrete Pumping 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 Limbach Holdings with a short position of Concrete Pumping. Check out your portfolio center. Please also check ongoing floating volatility patterns of Limbach Holdings and Concrete Pumping.
Diversification Opportunities for Limbach Holdings and Concrete Pumping
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Limbach and Concrete is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Limbach Holdings and Concrete Pumping Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Concrete Pumping Holdings and Limbach Holdings 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 Limbach Holdings are associated (or correlated) with Concrete Pumping. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Concrete Pumping Holdings has no effect on the direction of Limbach Holdings i.e., Limbach Holdings and Concrete Pumping go up and down completely randomly.
Pair Corralation between Limbach Holdings and Concrete Pumping
Considering the 90-day investment horizon Limbach Holdings is expected to generate 1.66 times more return on investment than Concrete Pumping. However, Limbach Holdings is 1.66 times more volatile than Concrete Pumping Holdings. It trades about 0.28 of its potential returns per unit of risk. Concrete Pumping Holdings is currently generating about 0.26 per unit of risk. If you would invest 7,731 in Limbach Holdings on August 27, 2024 and sell it today you would earn a total of 2,518 from holding Limbach Holdings or generate 32.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Limbach Holdings vs. Concrete Pumping Holdings
Performance |
| Timeline |
| Limbach Holdings |
| Concrete Pumping Holdings |
Limbach Holdings and Concrete Pumping Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Limbach Holdings and Concrete Pumping
The main advantage of trading using opposite Limbach Holdings and Concrete Pumping positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Limbach Holdings position performs unexpectedly, Concrete Pumping 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 Concrete Pumping will offset losses from the drop in Concrete Pumping's long position.| Limbach Holdings vs. MYR Group | Limbach Holdings vs. Granite Construction Incorporated | Limbach Holdings vs. Construction Partners | Limbach Holdings vs. Great Lakes Dredge |
| Concrete Pumping vs. ACS Actividades de | Concrete Pumping vs. ACS Actividades De | Concrete Pumping vs. Badger Infrastructure Solutions | Concrete Pumping vs. MYR Group |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Stocks Directory Find actively traded stocks across global markets |