Correlation Between Lakeside Holding and Hub

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

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

Diversification Opportunities for Lakeside Holding and Hub

-0.55

Correlation Coefficient

Lakeside Holding  Hub

Excellent diversification

The 3 months correlation between Lakeside and Hub is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Lakeside Holding Limited and Hub Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hub Group and Lakeside Holding 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 Lakeside Holding Limited are associated (or correlated) with Hub. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hub Group has no effect on the direction of Lakeside Holding i.e., Lakeside Holding and Hub go up and down completely randomly.

Pair Corralation between Lakeside Holding and Hub

Considering the 90-day investment horizon Lakeside Holding Limited is expected to under-perform the Hub. In addition to that, Lakeside Holding is 2.1 times more volatile than Hub Group. It trades about -0.02 of its total potential returns per unit of risk. Hub Group is currently generating about 0.07 per unit of volatility. If you would invest  3,117  in Hub Group on May 6, 2025 and sell it today you would earn a total of  265.50  from holding Hub Group or generate 8.52% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.41%
Values	Daily Returns

Lakeside Holding Limited  vs.  Hub Group

Lakeside Holding

Risk-Adjusted Performance

Very Weak

Over the last 90 days Lakeside Holding Limited has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, Lakeside Holding is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

Hub Group

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Hub Group are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak fundamental drivers, Hub may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Lakeside Holding and Hub

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

The idea behind Lakeside Holding Limited and Hub 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.