Correlation Between Applied Blockchain and LOWES
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By analyzing existing cross correlation between Applied Blockchain and LOWES PANIES INC, you can compare the effects of market volatilities on Applied Blockchain and LOWES 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 Applied Blockchain with a short position of LOWES. Check out your portfolio center. Please also check ongoing floating volatility patterns of Applied Blockchain and LOWES.
Diversification Opportunities for Applied Blockchain and LOWES
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Applied and LOWES is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Applied Blockchain and LOWES PANIES INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LOWES PANIES INC and Applied Blockchain 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 Applied Blockchain are associated (or correlated) with LOWES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LOWES PANIES INC has no effect on the direction of Applied Blockchain i.e., Applied Blockchain and LOWES go up and down completely randomly.
Pair Corralation between Applied Blockchain and LOWES
Given the investment horizon of 90 days Applied Blockchain is expected to generate 3.8 times more return on investment than LOWES. However, Applied Blockchain is 3.8 times more volatile than LOWES PANIES INC. It trades about 0.16 of its potential returns per unit of risk. LOWES PANIES INC is currently generating about -0.11 per unit of risk. If you would invest 759.00 in Applied Blockchain on September 13, 2024 and sell it today you would earn a total of 154.00 from holding Applied Blockchain or generate 20.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 86.36% |
| Values | Daily Returns |
Applied Blockchain vs. LOWES PANIES INC
Performance |
| Timeline |
| Applied Blockchain |
| LOWES PANIES INC |
Applied Blockchain and LOWES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Applied Blockchain and LOWES
The main advantage of trading using opposite Applied Blockchain and LOWES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Applied Blockchain position performs unexpectedly, LOWES 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 LOWES will offset losses from the drop in LOWES's long position.| Applied Blockchain vs. Magic Empire Global | Applied Blockchain vs. Zhong Yang Financial | Applied Blockchain vs. Netcapital | Applied Blockchain vs. Lazard |
| LOWES vs. BJs Restaurants | LOWES vs. The Cheesecake Factory | LOWES vs. Park Hotels Resorts | LOWES vs. GEN Restaurant Group, |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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