Correlation Between MCBC Holdings and LCI Industries

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

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

Diversification Opportunities for MCBC Holdings and LCI Industries

0.95

Correlation Coefficient

MCBC Holdings  LCI Industries

Almost no diversification

The 3 months correlation between MCBC and LCI is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding MCBC Holdings and LCI Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LCI Industries and MCBC 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 MCBC Holdings are associated (or correlated) with LCI Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LCI Industries has no effect on the direction of MCBC Holdings i.e., MCBC Holdings and LCI Industries go up and down completely randomly.

Pair Corralation between MCBC Holdings and LCI Industries

Given the investment horizon of 90 days MCBC Holdings is expected to generate 1.37 times more return on investment than LCI Industries. However, MCBC Holdings is 1.37 times more volatile than LCI Industries. It trades about 0.07 of its potential returns per unit of risk. LCI Industries is currently generating about 0.07 per unit of risk. If you would invest  1,776  in MCBC Holdings on May 12, 2025 and sell it today you would earn a total of  156.00  from holding MCBC Holdings or generate 8.78% return on investment over 90 days.

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

MCBC Holdings  vs.  LCI Industries

MCBC Holdings

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in MCBC Holdings are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain technical and fundamental indicators, MCBC Holdings may actually be approaching a critical reversion point that can send shares even higher in September 2025.

LCI Industries

Risk-Adjusted Performance

Mild

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

Pair Trading with MCBC Holdings and LCI Industries

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

The idea behind MCBC Holdings and LCI 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.

Check out your portfolio center.

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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.