Correlation Between Global E and LOWES
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By analyzing existing cross correlation between Global E Online and LOWES INC 3375, you can compare the effects of market volatilities on Global E 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 Global E with a short position of LOWES. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global E and LOWES.
Diversification Opportunities for Global E and LOWES
Pay attention - limited upside
The 3 months correlation between Global and LOWES is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding Global E Online and LOWES INC 3375 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LOWES INC 3375 and Global E 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 Global E Online 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 3375 has no effect on the direction of Global E i.e., Global E and LOWES go up and down completely randomly.
Pair Corralation between Global E and LOWES
Given the investment horizon of 90 days Global E Online is expected to generate 6.67 times more return on investment than LOWES. However, Global E is 6.67 times more volatile than LOWES INC 3375. It trades about 0.42 of its potential returns per unit of risk. LOWES INC 3375 is currently generating about 0.0 per unit of risk. If you would invest 4,020 in Global E Online on September 12, 2024 and sell it today you would earn a total of 1,332 from holding Global E Online or generate 33.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Global E Online vs. LOWES INC 3375
Performance |
| Timeline |
| Global E Online |
| LOWES INC 3375 |
Global E and LOWES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global E and LOWES
The main advantage of trading using opposite Global E and LOWES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global E 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.| Global E vs. MercadoLibre | Global E vs. PDD Holdings | Global E vs. JD Inc Adr | Global E vs. Alibaba Group Holding |
| LOWES vs. Cedar Realty Trust | LOWES vs. Global E Online | LOWES vs. Chester Mining | LOWES vs. Paiute Oil Mining |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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