Correlation Between Chemours and LOWES
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By analyzing existing cross correlation between Chemours Co and LOWES INC 6875, you can compare the effects of market volatilities on Chemours 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 Chemours with a short position of LOWES. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chemours and LOWES.
Diversification Opportunities for Chemours and LOWES
Very good diversification
The 3 months correlation between Chemours and LOWES is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Chemours Co and LOWES INC 6875 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LOWES INC 6875 and Chemours 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 Chemours Co 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 INC 6875 has no effect on the direction of Chemours i.e., Chemours and LOWES go up and down completely randomly.
Pair Corralation between Chemours and LOWES
Allowing for the 90-day total investment horizon Chemours Co is expected to under-perform the LOWES. In addition to that, Chemours is 5.56 times more volatile than LOWES INC 6875. It trades about -0.01 of its total potential returns per unit of risk. LOWES INC 6875 is currently generating about 0.01 per unit of volatility. If you would invest 10,540 in LOWES INC 6875 on September 14, 2024 and sell it today you would earn a total of 173.00 from holding LOWES INC 6875 or generate 1.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 81.78% |
| Values | Daily Returns |
Chemours Co vs. LOWES INC 6875
Performance |
| Timeline |
| Chemours |
| LOWES INC 6875 |
Chemours and LOWES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chemours and LOWES
The main advantage of trading using opposite Chemours and LOWES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chemours 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.| Chemours vs. Eastman Chemical | Chemours vs. Olin Corporation | Chemours vs. Cabot | Chemours vs. Kronos Worldwide |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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