Correlation Between Delta Apparel and Lakeland Inds

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Delta Apparel and Lakeland Inds 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 Delta Apparel and Lakeland Inds into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Delta Apparel and Lakeland Inds, you can compare the effects of market volatilities on Delta Apparel and Lakeland Inds 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 Delta Apparel with a short position of Lakeland Inds. Check out your portfolio center. Please also check ongoing floating volatility patterns of Delta Apparel and Lakeland Inds.

Diversification Opportunities for Delta Apparel and Lakeland Inds

0.8
  Correlation Coefficient

Very poor diversification

The 3 months correlation between Delta and Lakeland is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Delta Apparel and Lakeland Inds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lakeland Inds and Delta Apparel 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 Delta Apparel are associated (or correlated) with Lakeland Inds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lakeland Inds has no effect on the direction of Delta Apparel i.e., Delta Apparel and Lakeland Inds go up and down completely randomly.

Pair Corralation between Delta Apparel and Lakeland Inds

Considering the 90-day investment horizon Delta Apparel is expected to under-perform the Lakeland Inds. But the stock apears to be less risky and, when comparing its historical volatility, Delta Apparel is 1.04 times less risky than Lakeland Inds. The stock trades about -0.52 of its potential returns per unit of risk. The Lakeland Inds is currently generating about -0.41 of returns per unit of risk over similar time horizon. If you would invest  1,453  in Lakeland Inds on June 26, 2022 and sell it today you would lose (281.00)  from holding Lakeland Inds or give up 19.34% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthStrong
Accuracy100.0%
ValuesDaily Returns

Delta Apparel  vs.  Lakeland Inds

 Performance (%) 
       Timeline  
Delta Apparel 
Delta Performance
0 of 100
Over the last 90 days Delta Apparel has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unsteady performance in the last few months, the Stock's essential indicators remain somewhat strong which may send shares a bit higher in October 2022. The current disturbance may also be a sign of long term up-swing for the company investors.

Delta Price Channel

Lakeland Inds 
Lakeland Performance
0 of 100
Over the last 90 days Lakeland Inds has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's forward-looking signals remain rather sound which may send shares a bit higher in October 2022. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Lakeland Price Channel

Delta Apparel and Lakeland Inds Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Delta Apparel and Lakeland Inds

The main advantage of trading using opposite Delta Apparel and Lakeland Inds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Delta Apparel position performs unexpectedly, Lakeland Inds 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 Lakeland Inds will offset losses from the drop in Lakeland Inds' long position.
Delta Apparel vs. BUSHVELD MINERALS LTD
The idea behind Delta Apparel and Lakeland Inds pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
Lakeland Inds vs. BUSHVELD MINERALS LTD
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.

Other Complementary Tools

Correlation Analysis
Reduce portfolio risk simply by holding instruments which are not perfectly correlated
Go
Equity Forecasting
Use basic forecasting models to generate price predictions and determine price momentum
Go
Risk-Return Analysis
View associations between returns expected from investment and the risk you assume
Go
Transaction History
View history of all your transactions and understand their impact on performance
Go
Idea Breakdown
Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes
Go
Idea Analyzer
Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas
Go
Financial Widgets
Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets
Go
Portfolio File Import
Quickly import all of your third-party portfolios from your local drive in csv format
Go
Price Transformation
Use Price Transformation models to analyze depth of different equity instruments across global markets
Go