Correlation Between Integral and LOWES
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By analyzing existing cross correlation between Integral Ad Science and LOWES PANIES INC, you can compare the effects of market volatilities on Integral 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 Integral with a short position of LOWES. Check out your portfolio center. Please also check ongoing floating volatility patterns of Integral and LOWES.
Diversification Opportunities for Integral and LOWES
Very weak diversification
The 3 months correlation between Integral and LOWES is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Integral Ad Science 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 Integral 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 Integral Ad Science 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 Integral i.e., Integral and LOWES go up and down completely randomly.
Pair Corralation between Integral and LOWES
Considering the 90-day investment horizon Integral Ad Science is expected to generate 6.55 times more return on investment than LOWES. However, Integral is 6.55 times more volatile than LOWES PANIES INC. It trades about 0.01 of its potential returns per unit of risk. LOWES PANIES INC is currently generating about 0.02 per unit of risk. If you would invest 1,249 in Integral Ad Science on December 4, 2024 and sell it today you would lose (212.00) from holding Integral Ad Science or give up 16.97% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.39% |
| Values | Daily Returns |
Integral Ad Science vs. LOWES PANIES INC
Performance |
| Timeline |
| Integral Ad Science |
| LOWES PANIES INC |
Integral and LOWES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Integral and LOWES
The main advantage of trading using opposite Integral and LOWES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Integral 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.The idea behind Integral Ad Science and LOWES PANIES INC pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| LOWES vs. RBC Bearings Incorporated | LOWES vs. Teradyne | LOWES vs. Rocky Brands | LOWES vs. Vishay Intertechnology |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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