Correlation Between Lindsay and Shyft

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

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

Diversification Opportunities for Lindsay and Shyft

0.11

Correlation Coefficient

Lindsay  Shyft

Average diversification

The 3 months correlation between Lindsay and Shyft is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Lindsay and Shyft Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shyft Group and Lindsay 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 Lindsay are associated (or correlated) with Shyft. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shyft Group has no effect on the direction of Lindsay i.e., Lindsay and Shyft go up and down completely randomly.

Pair Corralation between Lindsay and Shyft

Considering the 90-day investment horizon Lindsay is expected to generate 19.53 times less return on investment than Shyft. But when comparing it to its historical volatility, Lindsay is 1.85 times less risky than Shyft. It trades about 0.04 of its potential returns per unit of risk. Shyft Group is currently generating about 0.41 of returns per unit of risk over similar time horizon. If you would invest  869.00  in Shyft Group on May 7, 2025 and sell it today you would earn a total of  385.00  from holding Shyft Group or generate 44.3% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	63.93%
Values	Daily Returns

Lindsay  vs.  Shyft Group

Lindsay

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Lindsay are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, Lindsay is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Shyft Group

Risk-Adjusted Performance

Very Strong

Over the last 90 days Shyft Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly fragile basic indicators, Shyft reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Lindsay and Shyft

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

The idea behind Lindsay and Shyft Group 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.