Correlation Between Limbach Holdings and Preformed Line
Can any of the company-specific risk be diversified away by investing in both Limbach Holdings and Preformed Line 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 Limbach Holdings and Preformed Line into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Limbach Holdings and Preformed Line Products, you can compare the effects of market volatilities on Limbach Holdings and Preformed Line 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 Limbach Holdings with a short position of Preformed Line. Check out your portfolio center. Please also check ongoing floating volatility patterns of Limbach Holdings and Preformed Line.
Diversification Opportunities for Limbach Holdings and Preformed Line
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Limbach and Preformed is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Limbach Holdings and Preformed Line Products in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Preformed Line Products and Limbach Holdings 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 Limbach Holdings are associated (or correlated) with Preformed Line. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Preformed Line Products has no effect on the direction of Limbach Holdings i.e., Limbach Holdings and Preformed Line go up and down completely randomly.
Pair Corralation between Limbach Holdings and Preformed Line
Considering the 90-day investment horizon Limbach Holdings is expected to under-perform the Preformed Line. In addition to that, Limbach Holdings is 1.15 times more volatile than Preformed Line Products. It trades about -0.2 of its total potential returns per unit of risk. Preformed Line Products is currently generating about 0.06 per unit of volatility. If you would invest 18,773 in Preformed Line Products on August 31, 2025 and sell it today you would earn a total of 1,752 from holding Preformed Line Products or generate 9.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Limbach Holdings vs. Preformed Line Products
Performance |
| Timeline |
| Limbach Holdings |
| Preformed Line Products |
Limbach Holdings and Preformed Line Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Limbach Holdings and Preformed Line
The main advantage of trading using opposite Limbach Holdings and Preformed Line positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Limbach Holdings position performs unexpectedly, Preformed Line 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 Preformed Line will offset losses from the drop in Preformed Line's long position.| Limbach Holdings vs. B Communications | Limbach Holdings vs. Road King Infrastructure | Limbach Holdings vs. On4 Communications | Limbach Holdings vs. Silk Road Entertainment |
| Preformed Line vs. Asure Software | Preformed Line vs. Smith Micro Software | Preformed Line vs. Delaware Investments Florida | Preformed Line vs. PSI Software AG |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |