Correlation Between PF Industries and LS Starrett
Can any of the company-specific risk be diversified away by investing in both PF Industries and LS Starrett 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 PF Industries and LS Starrett into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PF Industries and LS Starrett, you can compare the effects of market volatilities on PF Industries and LS Starrett 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 PF Industries with a short position of LS Starrett. Check out your portfolio center. Please also check ongoing floating volatility patterns of PF Industries and LS Starrett.
Diversification Opportunities for PF Industries and LS Starrett
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between PFIN and SCX is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding PF Industries and LS Starrett in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LS Starrett and PF 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 PF Industries are associated (or correlated) with LS Starrett. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LS Starrett has no effect on the direction of PF Industries i.e., PF Industries and LS Starrett go up and down completely randomly.
Pair Corralation between PF Industries and LS Starrett
If you would invest 1,250 in LS Starrett on August 28, 2024 and sell it today you would earn a total of 0.00 from holding LS Starrett or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PF Industries vs. LS Starrett
Performance |
| Timeline |
| PF Industries |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| LS Starrett |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
PF Industries and LS Starrett Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PF Industries and LS Starrett
The main advantage of trading using opposite PF Industries and LS Starrett positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PF Industries position performs unexpectedly, LS Starrett 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 LS Starrett will offset losses from the drop in LS Starrett's long position.| PF Industries vs. Kennametal | PF Industries vs. Hillman Solutions Corp | PF Industries vs. AB SKF | PF Industries vs. Eastern Co |
| LS Starrett vs. Eastern Co | LS Starrett vs. Timken Company | LS Starrett vs. Lincoln Electric Holdings | LS Starrett vs. Hillman Solutions Corp |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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