Correlation Between Lees Pharmaceutical and Marine Products
Can any of the company-specific risk be diversified away by investing in both Lees Pharmaceutical and Marine Products 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 Lees Pharmaceutical and Marine Products into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lees Pharmaceutical Holdings and Marine Products, you can compare the effects of market volatilities on Lees Pharmaceutical and Marine Products 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 Lees Pharmaceutical with a short position of Marine Products. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lees Pharmaceutical and Marine Products.
Diversification Opportunities for Lees Pharmaceutical and Marine Products
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Lees and Marine is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Lees Pharmaceutical Holdings and Marine Products in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marine Products and Lees Pharmaceutical 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 Lees Pharmaceutical Holdings are associated (or correlated) with Marine Products. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marine Products has no effect on the direction of Lees Pharmaceutical i.e., Lees Pharmaceutical and Marine Products go up and down completely randomly.
Pair Corralation between Lees Pharmaceutical and Marine Products
If you would invest 1,002 in Marine Products on September 1, 2024 and sell it today you would lose (13.00) from holding Marine Products or give up 1.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.79% |
| Values | Daily Returns |
Lees Pharmaceutical Holdings vs. Marine Products
Performance |
| Timeline |
| Lees Pharmaceutical |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Marine Products |
Lees Pharmaceutical and Marine Products Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lees Pharmaceutical and Marine Products
The main advantage of trading using opposite Lees Pharmaceutical and Marine Products positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lees Pharmaceutical position performs unexpectedly, Marine Products 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 Marine Products will offset losses from the drop in Marine Products' long position.| Lees Pharmaceutical vs. Brunswick | Lees Pharmaceutical vs. Freedom Internet Group | Lees Pharmaceutical vs. Reservoir Media | Lees Pharmaceutical vs. Sphere Entertainment Co |
| Marine Products vs. LCI Industries | Marine Products vs. MCBC Holdings | Marine Products vs. Winnebago Industries | Marine Products vs. Thor Industries |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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