Correlation Between Triumph Bancorp and Lincoln Electric
Can any of the company-specific risk be diversified away by investing in both Triumph Bancorp 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 Triumph Bancorp and Lincoln Electric into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Triumph Bancorp and Lincoln Electric Holdings, you can compare the effects of market volatilities on Triumph Bancorp 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 Triumph Bancorp with a short position of Lincoln Electric. Check out your portfolio center. Please also check ongoing floating volatility patterns of Triumph Bancorp and Lincoln Electric.
Diversification Opportunities for Triumph Bancorp and Lincoln Electric
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Triumph and Lincoln is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Triumph Bancorp 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 Triumph Bancorp 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 Triumph Bancorp 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 Triumph Bancorp i.e., Triumph Bancorp and Lincoln Electric go up and down completely randomly.
Pair Corralation between Triumph Bancorp and Lincoln Electric
If you would invest 17,593 in Lincoln Electric Holdings on September 12, 2024 and sell it today you would earn a total of 3,361 from holding Lincoln Electric Holdings or generate 19.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Triumph Bancorp vs. Lincoln Electric Holdings
Performance |
| Timeline |
| Triumph Bancorp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Lincoln Electric Holdings |
Triumph Bancorp and Lincoln Electric Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Triumph Bancorp and Lincoln Electric
The main advantage of trading using opposite Triumph Bancorp and Lincoln Electric positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Triumph Bancorp 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.| Triumph Bancorp vs. Old Dominion Freight | Triumph Bancorp vs. Mesa Air Group | Triumph Bancorp vs. Western Digital | Triumph Bancorp vs. Radcom |
| 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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