Correlation Between Superior Uniform and Lakeland Industries
Can any of the company-specific risk be diversified away by investing in both Superior Uniform 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 Superior Uniform and Lakeland Industries into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Superior Uniform Group and Lakeland Industries, you can compare the effects of market volatilities on Superior Uniform 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 Superior Uniform with a short position of Lakeland Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Superior Uniform and Lakeland Industries.
Diversification Opportunities for Superior Uniform and Lakeland Industries
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Superior and Lakeland is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Superior Uniform Group and Lakeland Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lakeland Industries and Superior Uniform 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 Superior Uniform 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 Superior Uniform i.e., Superior Uniform and Lakeland Industries go up and down completely randomly.
Pair Corralation between Superior Uniform and Lakeland Industries
Considering the 90-day investment horizon Superior Uniform Group is expected to generate 1.1 times more return on investment than Lakeland Industries. However, Superior Uniform is 1.1 times more volatile than Lakeland Industries. It trades about 0.22 of its potential returns per unit of risk. Lakeland Industries is currently generating about 0.15 per unit of risk. If you would invest 1,489 in Superior Uniform Group on August 27, 2024 and sell it today you would earn a total of 194.00 from holding Superior Uniform Group or generate 13.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Superior Uniform Group vs. Lakeland Industries
Performance |
| Timeline |
| Superior Uniform |
| Lakeland Industries |
Superior Uniform and Lakeland Industries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Superior Uniform and Lakeland Industries
The main advantage of trading using opposite Superior Uniform and Lakeland Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Superior Uniform 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.| Superior Uniform vs. Lakeland Industries | Superior Uniform vs. Jerash Holdings | Superior Uniform vs. G III Apparel Group | Superior Uniform vs. JX Luxventure Limited |
| 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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