Correlation Between Lamar Advertising and PotlatchDeltic Corp
Can any of the company-specific risk be diversified away by investing in both Lamar Advertising and PotlatchDeltic Corp 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 Lamar Advertising and PotlatchDeltic Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lamar Advertising and PotlatchDeltic Corp, you can compare the effects of market volatilities on Lamar Advertising and PotlatchDeltic Corp 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 Lamar Advertising with a short position of PotlatchDeltic Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lamar Advertising and PotlatchDeltic Corp.
Diversification Opportunities for Lamar Advertising and PotlatchDeltic Corp
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lamar and PotlatchDeltic is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Lamar Advertising and PotlatchDeltic Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PotlatchDeltic Corp and Lamar Advertising 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 Lamar Advertising are associated (or correlated) with PotlatchDeltic Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PotlatchDeltic Corp has no effect on the direction of Lamar Advertising i.e., Lamar Advertising and PotlatchDeltic Corp go up and down completely randomly.
Pair Corralation between Lamar Advertising and PotlatchDeltic Corp
Given the investment horizon of 90 days Lamar Advertising is expected to generate 0.83 times more return on investment than PotlatchDeltic Corp. However, Lamar Advertising is 1.21 times less risky than PotlatchDeltic Corp. It trades about 0.06 of its potential returns per unit of risk. PotlatchDeltic Corp is currently generating about -0.05 per unit of risk. If you would invest 12,597 in Lamar Advertising on August 27, 2025 and sell it today you would earn a total of 613.00 from holding Lamar Advertising or generate 4.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lamar Advertising vs. PotlatchDeltic Corp
Performance |
| Timeline |
| Lamar Advertising |
| PotlatchDeltic Corp |
Lamar Advertising and PotlatchDeltic Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lamar Advertising and PotlatchDeltic Corp
The main advantage of trading using opposite Lamar Advertising and PotlatchDeltic Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lamar Advertising position performs unexpectedly, PotlatchDeltic Corp 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 PotlatchDeltic Corp will offset losses from the drop in PotlatchDeltic Corp's long position.| Lamar Advertising vs. Global Gaming Technologies | Lamar Advertising vs. GameStop Corp | Lamar Advertising vs. Sharplink Gaming | Lamar Advertising vs. China Cgame |
| PotlatchDeltic Corp vs. Summit Environmental | PotlatchDeltic Corp vs. Ironstone Group | PotlatchDeltic Corp vs. Infrastrutture Wireless Italiane | PotlatchDeltic Corp vs. Piedmont Office Realty |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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