Lincoln Electric Correlations

LECO Stock

USD 198.75 2.40 1.22%

The current 90-days correlation between Lincoln Electric Holdings and Kennametal is 0.57 (i.e., Very weak diversification). A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Lincoln Electric moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Lincoln Electric Holdings moves in either direction, the perfectly negatively correlated security will move in the opposite direction.

Lincoln Electric Correlation With Market

Very weak diversification

The correlation between Lincoln Electric Holdings and DJI is 0.58 (i.e., Very weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Lincoln Electric Holdings and DJI in the same portfolio, assuming nothing else is changed.

Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Lincoln Electric Holdings. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in main economic indicators.

Moving together with Lincoln Stock

0.66	EML	Eastern	Pair Corr
0.66	RBC	RBC Bearings	Pair Corr
0.65	SWK	Stanley Black Decker	Pair Corr
0.77	TKR	Timken Company	Pair Corr
0.71	G	Genpact Limited	Pair Corr
0.72	DE	Deere Company	Pair Corr
0.66	EH	Ehang Holdings	Pair Corr
0.61	GE	GE Aerospace	Pair Corr

Moving against Lincoln Stock

0.56	GD	General Dynamics	Pair Corr
0.38	CVR	Chicago Rivet Machine Earnings Call Today	Pair Corr
0.36	BW	Babcock Wilcox Enter	Pair Corr
0.35	CW	Curtiss Wright	Pair Corr
0.31	BV	BrightView Holdings	Pair Corr
0.49	VCIG	VCI Global Limited	Pair Corr
0.38	TE	T1 Energy Symbol Change	Pair Corr
0.37	DLHC	DLH Holdings Corp	Pair Corr
0.35	NL	NL Industries	Pair Corr

Related Correlations Analysis

	KMT	TTC	SNA	RBC	TKR	RBCP	EML	SCX	HLMN	SWK
KMT		0.66	0.56	-0.67	-0.38	0.0	0.23	0.0	0.49	-0.22	KMT
TTC	0.66		0.71	-0.17	0.19	0.0	0.42	0.0	0.83	0.41	TTC
SNA	0.56	0.71		-0.04	0.23	0.0	0.33	0.0	0.65	0.44	SNA
RBC	-0.67	-0.17	-0.04		0.81	0.0	0.26	0.0	0.11	0.6	RBC
TKR	-0.38	0.19	0.23	0.81		0.0	0.34	0.0	0.45	0.73	TKR
RBCP	0.0	0.0	0.0	0.0	0.0		0.0	0.0	0.0	0.0	RBCP
EML	0.23	0.42	0.33	0.26	0.34	0.0		0.0	0.62	0.4	EML
SCX	0.0	0.0	0.0	0.0	0.0	0.0	0.0		0.0	0.0	SCX
HLMN	0.49	0.83	0.65	0.11	0.45	0.0	0.62	0.0		0.49	HLMN
SWK	-0.22	0.41	0.44	0.6	0.73	0.0	0.4	0.0	0.49		SWK
	KMT	TTC	SNA	RBC	TKR	RBCP	EML	SCX	HLMN	SWK

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Correlation Matchups

Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.

High positive correlations

HLMN	+ 0.83	TTC
TKR	+ 0.81	RBC
SWK	+ 0.73	TKR
SNA	+ 0.71	TTC
TTC	+ 0.66	KMT
HLMN	+ 0.65	SNA

High negative correlations

RBC	- 0.67	KMT
TKR	- 0.38	KMT
SWK	- 0.22	KMT
RBC	- 0.17	TTC
RBC	- 0.04	SNA
SWK	- 0.0	SCX

Risk-Adjusted Indicators

There is a big difference between Lincoln Stock performing well and Lincoln Electric Company doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze Lincoln Electric's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.

	Mean Deviation	Jensen Alpha	Sortino Ratio	Treynor Ratio	Semi Deviation	Expected Shortfall	Potential Upside	Value @Risk	Maximum Drawdown
KMT	1.27	(0.25)	0.00	(0.40)	0.00	0.00	1.85	(3.12)	7.36
TTC	1.40	(0.21)	0.00	1.01	0.00	0.00	2.85	(3.18)	8.48
SNA	0.96	(0.05)	0.00	(0.05)	0.00	0.00	2.01	(2.08)	6.57
RBC	1.24	0.06	0.05	0.08	1.32	(1.44)	3.35	(2.42)	11.50
TKR	1.30	0.04	0.02	0.04	1.78	(1.31)	3.10	(3.68)	7.96
RBCP	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
EML	1.73	(0.25)	0.00	(0.22)	0.00	0.00	4.13	(3.58)	9.74
SCX	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
HLMN	1.48	(0.25)	0.00	(0.23)	0.00	0.00	2.80	(3.28)	7.61
SWK	1.51	0.01	0.00	(0.02)	1.81	(1.62)	2.79	(2.84)	8.98

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