Correlation Between Mid Atlantic and Lincoln Electric
Can any of the company-specific risk be diversified away by investing in both Mid Atlantic and Lincoln Electric 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 Mid Atlantic and Lincoln Electric into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mid Atlantic Home Health and Lincoln Electric Holdings, you can compare the effects of market volatilities on Mid Atlantic and Lincoln Electric 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 Mid Atlantic with a short position of Lincoln Electric. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mid Atlantic and Lincoln Electric.
Diversification Opportunities for Mid Atlantic and Lincoln Electric
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Mid and Lincoln is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Mid Atlantic Home Health and Lincoln Electric Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lincoln Electric Holdings and Mid Atlantic 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 Mid Atlantic Home Health are associated (or correlated) with Lincoln Electric. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lincoln Electric Holdings has no effect on the direction of Mid Atlantic i.e., Mid Atlantic and Lincoln Electric go up and down completely randomly.
Pair Corralation between Mid Atlantic and Lincoln Electric
If you would invest 18,608 in Lincoln Electric Holdings on September 2, 2024 and sell it today you would earn a total of 3,240 from holding Lincoln Electric Holdings or generate 17.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mid Atlantic Home Health vs. Lincoln Electric Holdings
Performance |
| Timeline |
| Mid Atlantic Home |
| Lincoln Electric Holdings |
Mid Atlantic and Lincoln Electric Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mid Atlantic and Lincoln Electric
The main advantage of trading using opposite Mid Atlantic and Lincoln Electric positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mid Atlantic position performs unexpectedly, Lincoln Electric 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 Lincoln Electric will offset losses from the drop in Lincoln Electric's long position.| Mid Atlantic vs. Pennant Group | Mid Atlantic vs. Encompass Health Corp | Mid Atlantic vs. Enhabit | Mid Atlantic vs. Concord Medical Services |
| Lincoln Electric vs. Kennametal | Lincoln Electric vs. Toro Co | Lincoln Electric vs. Snap On | Lincoln Electric vs. RBC Bearings Incorporated |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |