Correlation Between Employers Holdings and LOWES
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By analyzing existing cross correlation between Employers Holdings and LOWES INC 6875, you can compare the effects of market volatilities on Employers Holdings 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 Employers Holdings with a short position of LOWES. Check out your portfolio center. Please also check ongoing floating volatility patterns of Employers Holdings and LOWES.
Diversification Opportunities for Employers Holdings and LOWES
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Employers and LOWES is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Employers Holdings 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 Employers 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 Employers Holdings 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 Employers Holdings i.e., Employers Holdings and LOWES go up and down completely randomly.
Pair Corralation between Employers Holdings and LOWES
Considering the 90-day investment horizon Employers Holdings is expected to generate 4.21 times more return on investment than LOWES. However, Employers Holdings is 4.21 times more volatile than LOWES INC 6875. It trades about 0.25 of its potential returns per unit of risk. LOWES INC 6875 is currently generating about -0.19 per unit of risk. If you would invest 4,753 in Employers Holdings on September 4, 2024 and sell it today you would earn a total of 553.00 from holding Employers Holdings or generate 11.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 90.48% |
| Values | Daily Returns |
Employers Holdings vs. LOWES INC 6875
Performance |
| Timeline |
| Employers Holdings |
| LOWES INC 6875 |
Employers Holdings and LOWES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Employers Holdings and LOWES
The main advantage of trading using opposite Employers Holdings and LOWES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Employers Holdings 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.| Employers Holdings vs. ICC Holdings | Employers Holdings vs. AMERISAFE | Employers Holdings vs. NMI Holdings | Employers Holdings vs. Investors Title |
| LOWES vs. Alaska Air Group | LOWES vs. Ryanair Holdings PLC | LOWES vs. Porvair plc | LOWES vs. Employers Holdings |
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..
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