Correlation Between Axalta Coating and LOWES
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By analyzing existing cross correlation between Axalta Coating Systems and LOWES PANIES INC, you can compare the effects of market volatilities on Axalta Coating 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 Axalta Coating with a short position of LOWES. Check out your portfolio center. Please also check ongoing floating volatility patterns of Axalta Coating and LOWES.
Diversification Opportunities for Axalta Coating and LOWES
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Axalta and LOWES is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Axalta Coating Systems 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 Axalta Coating 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 Axalta Coating Systems 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 Axalta Coating i.e., Axalta Coating and LOWES go up and down completely randomly.
Pair Corralation between Axalta Coating and LOWES
Given the investment horizon of 90 days Axalta Coating Systems is expected to generate 4.08 times more return on investment than LOWES. However, Axalta Coating is 4.08 times more volatile than LOWES PANIES INC. It trades about -0.03 of its potential returns per unit of risk. LOWES PANIES INC is currently generating about -0.22 per unit of risk. If you would invest 3,960 in Axalta Coating Systems on September 13, 2024 and sell it today you would lose (39.00) from holding Axalta Coating Systems or give up 0.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Axalta Coating Systems vs. LOWES PANIES INC
Performance |
| Timeline |
| Axalta Coating Systems |
| LOWES PANIES INC |
Axalta Coating and LOWES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Axalta Coating and LOWES
The main advantage of trading using opposite Axalta Coating and LOWES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Axalta Coating 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.| Axalta Coating vs. Avient Corp | Axalta Coating vs. H B Fuller | Axalta Coating vs. Quaker Chemical | Axalta Coating vs. Cabot |
| LOWES vs. Hudson Technologies | LOWES vs. Forsys Metals Corp | LOWES vs. Codexis | LOWES vs. Flexible Solutions International |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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