Correlation Between Lazydays Holdings and Kingsway Financial

Can any of the company-specific risk be diversified away by investing in both Lazydays Holdings and Kingsway Financial 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 Lazydays Holdings and Kingsway Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Lazydays Holdings and Kingsway Financial Services, you can compare the effects of market volatilities on Lazydays Holdings and Kingsway Financial 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 Lazydays Holdings with a short position of Kingsway Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lazydays Holdings and Kingsway Financial.

Diversification Opportunities for Lazydays Holdings and Kingsway Financial

0.0

Correlation Coefficient

Lazydays Holdings  Kingsway Financial

Pay attention - limited upside

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

Pair Corralation between Lazydays Holdings and Kingsway Financial

If you would invest (100.00) in Lazydays Holdings on December 29, 2024 and sell it today you would earn a total of  100.00  from holding Lazydays Holdings 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

Lazydays Holdings  vs.  Kingsway Financial Services

Lazydays Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days Lazydays Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Lazydays Holdings is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Kingsway Financial

Risk-Adjusted Performance

Very Weak

Over the last 90 days Kingsway Financial Services has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable technical and fundamental indicators, Kingsway Financial is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Lazydays Holdings and Kingsway Financial

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

The idea behind Lazydays Holdings and Kingsway Financial Services 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.