Correlation Between Miller Industries and Lydall
Can any of the company-specific risk be diversified away by investing in both Miller Industries and Lydall 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 Miller Industries and Lydall into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Miller Industries and Lydall Inc, you can compare the effects of market volatilities on Miller Industries and Lydall 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 Miller Industries with a short position of Lydall. Check out your portfolio center. Please also check ongoing floating volatility patterns of Miller Industries and Lydall.
Diversification Opportunities for Miller Industries and Lydall
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Miller and Lydall is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Miller Industries and Lydall Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lydall Inc and Miller 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 Miller Industries are associated (or correlated) with Lydall. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lydall Inc has no effect on the direction of Miller Industries i.e., Miller Industries and Lydall go up and down completely randomly.
Pair Corralation between Miller Industries and Lydall
If you would invest (100.00) in Lydall Inc on January 25, 2024 and sell it today you would earn a total of 100.00 from holding Lydall Inc or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Miller Industries vs. Lydall Inc
Performance |
| Timeline |
| Miller Industries |
| Lydall Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Miller Industries and Lydall Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Miller Industries and Lydall
The main advantage of trading using opposite Miller Industries and Lydall positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Miller Industries position performs unexpectedly, Lydall 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 Lydall will offset losses from the drop in Lydall's long position.| Miller Industries vs. Motorcar Parts of | Miller Industries vs. Monro Muffler Brake | Miller Industries vs. Stoneridge | Miller Industries vs. Superior Industries International |
| Lydall vs. Air Transport Services | Lydall vs. Hawaiian Holdings | Lydall vs. American Airlines Group | Lydall vs. QBE Insurance Group |
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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