Correlation Between Delta Apparel and Lakeland Industries

Can any of the company-specific risk be diversified away by investing in both Delta Apparel and Lakeland Industries 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 Industries 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 Industries, you can compare the effects of market volatilities on Delta Apparel and Lakeland Industries 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 Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Delta Apparel and Lakeland Industries.

Diversification Opportunities for Delta Apparel and Lakeland Industries

0.0

Correlation Coefficient

Delta Apparel  Lakeland Industries

Pay attention - limited upside

The 3 months correlation between Delta and Lakeland is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Delta Apparel and Lakeland Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lakeland Industries 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 Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lakeland Industries has no effect on the direction of Delta Apparel i.e., Delta Apparel and Lakeland Industries go up and down completely randomly.

Pair Corralation between Delta Apparel and Lakeland Industries

If you would invest (100.00) in Delta Apparel on December 19, 2024 and sell it today you would earn a total of  100.00  from holding Delta Apparel or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Delta Apparel  vs.  Lakeland Industries

Delta Apparel

Risk-Adjusted Performance

Very Weak

Over the last 90 days Delta Apparel has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong essential indicators, Delta Apparel is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Lakeland Industries

Risk-Adjusted Performance

Very Weak

Over the last 90 days Lakeland Industries 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 April 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with Delta Apparel and Lakeland Industries

The main advantage of trading using opposite Delta Apparel and Lakeland Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Delta Apparel position performs unexpectedly, Lakeland Industries 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 Industries will offset losses from the drop in Lakeland Industries' long position.

The idea behind Delta Apparel and Lakeland Industries 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.

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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 Transaction History module to view history of all your transactions and understand their impact on performance.