Correlation Between Lincoln Electric and 694308KD8
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By analyzing existing cross correlation between Lincoln Electric Holdings and PCG 525 01 MAR 52, you can compare the effects of market volatilities on Lincoln Electric and 694308KD8 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 Lincoln Electric with a short position of 694308KD8. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lincoln Electric and 694308KD8.
Diversification Opportunities for Lincoln Electric and 694308KD8
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lincoln and 694308KD8 is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Lincoln Electric Holdings and PCG 525 01 MAR 52 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PCG 525 01 and Lincoln Electric 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 Lincoln Electric Holdings are associated (or correlated) with 694308KD8. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PCG 525 01 has no effect on the direction of Lincoln Electric i.e., Lincoln Electric and 694308KD8 go up and down completely randomly.
Pair Corralation between Lincoln Electric and 694308KD8
Given the investment horizon of 90 days Lincoln Electric Holdings is expected to under-perform the 694308KD8. But the stock apears to be less risky and, when comparing its historical volatility, Lincoln Electric Holdings is 1.16 times less risky than 694308KD8. The stock trades about -0.61 of its potential returns per unit of risk. The PCG 525 01 MAR 52 is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 9,254 in PCG 525 01 MAR 52 on September 25, 2024 and sell it today you would lose (65.00) from holding PCG 525 01 MAR 52 or give up 0.7% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 85.71% |
Values | Daily Returns |
Lincoln Electric Holdings vs. PCG 525 01 MAR 52
Performance |
Timeline |
Lincoln Electric Holdings |
PCG 525 01 |
Lincoln Electric and 694308KD8 Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Lincoln Electric and 694308KD8
The main advantage of trading using opposite Lincoln Electric and 694308KD8 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lincoln Electric position performs unexpectedly, 694308KD8 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 694308KD8 will offset losses from the drop in 694308KD8's long position.Lincoln Electric vs. Kennametal | Lincoln Electric vs. Toro Co | Lincoln Electric vs. Snap On | Lincoln Electric vs. RBC Bearings Incorporated |
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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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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