Correlation Between Coupang LLC and LOWES
Specify exactly 2 symbols:
By analyzing existing cross correlation between Coupang LLC and LOWES INC 425, you can compare the effects of market volatilities on Coupang LLC 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 Coupang LLC with a short position of LOWES. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coupang LLC and LOWES.
Diversification Opportunities for Coupang LLC and LOWES
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Coupang and LOWES is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Coupang LLC and LOWES INC 425 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LOWES INC 425 and Coupang LLC 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 Coupang LLC 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 425 has no effect on the direction of Coupang LLC i.e., Coupang LLC and LOWES go up and down completely randomly.
Pair Corralation between Coupang LLC and LOWES
Given the investment horizon of 90 days Coupang LLC is expected to generate 1.29 times more return on investment than LOWES. However, Coupang LLC is 1.29 times more volatile than LOWES INC 425. It trades about 0.06 of its potential returns per unit of risk. LOWES INC 425 is currently generating about 0.03 per unit of risk. If you would invest 2,179 in Coupang LLC on September 3, 2024 and sell it today you would earn a total of 306.00 from holding Coupang LLC or generate 14.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 52.8% |
| Values | Daily Returns |
Coupang LLC vs. LOWES INC 425
Performance |
| Timeline |
| Coupang LLC |
| LOWES INC 425 |
Coupang LLC and LOWES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coupang LLC and LOWES
The main advantage of trading using opposite Coupang LLC and LOWES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coupang LLC 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.| Coupang LLC vs. MercadoLibre | Coupang LLC vs. PDD Holdings | Coupang LLC vs. JD Inc Adr | Coupang LLC vs. Alibaba Group Holding |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |