Correlation Between Molekule and Lakeland Industries
Can any of the company-specific risk be diversified away by investing in both Molekule and Lakeland Industries 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 Molekule and Lakeland Industries into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Molekule Group and Lakeland Industries, you can compare the effects of market volatilities on Molekule and Lakeland Industries 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 Molekule with a short position of Lakeland Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Molekule and Lakeland Industries.
Diversification Opportunities for Molekule and Lakeland Industries
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Molekule and Lakeland is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Molekule Group and Lakeland Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lakeland Industries and Molekule 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 Molekule Group are associated (or correlated) with Lakeland Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lakeland Industries has no effect on the direction of Molekule i.e., Molekule and Lakeland Industries go up and down completely randomly.
Pair Corralation between Molekule and Lakeland Industries
If you would invest 2,005 in Lakeland Industries on August 27, 2024 and sell it today you would earn a total of 156.00 from holding Lakeland Industries or generate 7.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Molekule Group vs. Lakeland Industries
Performance |
| Timeline |
| Molekule Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Lakeland Industries |
Molekule and Lakeland Industries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Molekule and Lakeland Industries
The main advantage of trading using opposite Molekule and Lakeland Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Molekule position performs unexpectedly, Lakeland Industries 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 Lakeland Industries will offset losses from the drop in Lakeland Industries' long position.| Molekule vs. Lakeland Industries | Molekule vs. Tandy Leather Factory | Molekule vs. Boot Barn Holdings | Molekule vs. Ryanair Holdings PLC |
| Lakeland Industries vs. Vince Holding Corp | Lakeland Industries vs. Oxford Industries | Lakeland Industries vs. Gildan Activewear | Lakeland Industries vs. Columbia Sportswear |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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