Correlation Between Lennox International and DNB ASA
Can any of the company-specific risk be diversified away by investing in both Lennox International and DNB ASA 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 Lennox International and DNB ASA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lennox International and DNB ASA, you can compare the effects of market volatilities on Lennox International and DNB ASA 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 Lennox International with a short position of DNB ASA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lennox International and DNB ASA.
Diversification Opportunities for Lennox International and DNB ASA
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Lennox and DNB is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Lennox International and DNB ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DNB ASA and Lennox International 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 Lennox International are associated (or correlated) with DNB ASA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DNB ASA has no effect on the direction of Lennox International i.e., Lennox International and DNB ASA go up and down completely randomly.
Pair Corralation between Lennox International and DNB ASA
If you would invest 36,058 in Lennox International on January 24, 2024 and sell it today you would earn a total of 9,657 from holding Lennox International or generate 26.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Lennox International vs. DNB ASA
Performance |
| Timeline |
| Lennox International |
| DNB ASA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Lennox International and DNB ASA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lennox International and DNB ASA
The main advantage of trading using opposite Lennox International and DNB ASA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lennox International position performs unexpectedly, DNB ASA 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 DNB ASA will offset losses from the drop in DNB ASA's long position.| Lennox International vs. Janus International Group | Lennox International vs. Interface | Lennox International vs. Beacon Roofing Supply | Lennox International vs. Perma Pipe International Holdings |
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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 CEOs Directory module to screen CEOs from public companies around the world.
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