Correlation Between LCI Industries and Hamilton Beach

Can any of the company-specific risk be diversified away by investing in both LCI Industries and Hamilton Beach 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 LCI Industries and Hamilton Beach into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between LCI Industries and Hamilton Beach Brands, you can compare the effects of market volatilities on LCI Industries and Hamilton Beach 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 LCI Industries with a short position of Hamilton Beach. Check out your portfolio center. Please also check ongoing floating volatility patterns of LCI Industries and Hamilton Beach.

Diversification Opportunities for LCI Industries and Hamilton Beach

0.36

Correlation Coefficient

LCI Industries  Hamilton Beach

Weak diversification

The 3 months correlation between LCI and Hamilton is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding LCI Industries and Hamilton Beach Brands in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hamilton Beach Brands and LCI Industries 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 LCI Industries are associated (or correlated) with Hamilton Beach. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hamilton Beach Brands has no effect on the direction of LCI Industries i.e., LCI Industries and Hamilton Beach go up and down completely randomly.

Pair Corralation between LCI Industries and Hamilton Beach

Given the investment horizon of 90 days LCI Industries is expected to generate 2.93 times less return on investment than Hamilton Beach. But when comparing it to its historical volatility, LCI Industries is 1.88 times less risky than Hamilton Beach. It trades about 0.16 of its potential returns per unit of risk. Hamilton Beach Brands is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest  1,393  in Hamilton Beach Brands on September 12, 2025 and sell it today you would earn a total of  244.00  from holding Hamilton Beach Brands or generate 17.52% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

LCI Industries  vs.  Hamilton Beach Brands

LCI Industries

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in LCI Industries are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite fairly uncertain forward indicators, LCI Industries demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Hamilton Beach Brands

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Hamilton Beach Brands are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite somewhat uncertain fundamental drivers, Hamilton Beach sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with LCI Industries and Hamilton Beach

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

The idea behind LCI Industries and Hamilton Beach Brands 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.