Correlation Between Lennox International and Barclays Capital
Can any of the company-specific risk be diversified away by investing in both Lennox International and Barclays Capital 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 Barclays Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lennox International and Barclays Capital, you can compare the effects of market volatilities on Lennox International and Barclays Capital 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 Barclays Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lennox International and Barclays Capital.
Diversification Opportunities for Lennox International and Barclays Capital
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Lennox and Barclays is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Lennox International and Barclays Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barclays Capital 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 Barclays Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Barclays Capital has no effect on the direction of Lennox International i.e., Lennox International and Barclays Capital go up and down completely randomly.
Pair Corralation between Lennox International and Barclays Capital
If you would invest 46,904 in Lennox International on December 29, 2023 and sell it today you would earn a total of 1,764 from holding Lennox International or generate 3.76% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 4.55% |
Values | Daily Returns |
Lennox International vs. Barclays Capital
Performance |
Timeline |
Lennox International |
Barclays Capital |
Risk-Adjusted Performance
0 of 100
Low | High |
Very Weak
Lennox International and Barclays Capital Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Lennox International and Barclays Capital
The main advantage of trading using opposite Lennox International and Barclays Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lennox International position performs unexpectedly, Barclays Capital 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 Barclays Capital will offset losses from the drop in Barclays Capital's long position.Lennox International vs. Owens Corning | Lennox International vs. Trane Technologies Plc | Lennox International vs. View Inc | Lennox International vs. Fortune Brands Innovations |
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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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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