Correlation Between International Business and LOWES
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By analyzing existing cross correlation between International Business Machines and LOWES PANIES INC, you can compare the effects of market volatilities on International Business 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 International Business with a short position of LOWES. Check out your portfolio center. Please also check ongoing floating volatility patterns of International Business and LOWES.
Diversification Opportunities for International Business and LOWES
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between International and LOWES is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding International Business Machine 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 International Business 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 International Business Machines 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 International Business i.e., International Business and LOWES go up and down completely randomly.
Pair Corralation between International Business and LOWES
Considering the 90-day investment horizon International Business Machines is expected to generate 0.63 times more return on investment than LOWES. However, International Business Machines is 1.58 times less risky than LOWES. It trades about 0.31 of its potential returns per unit of risk. LOWES PANIES INC is currently generating about -0.03 per unit of risk. If you would invest 21,086 in International Business Machines on September 13, 2024 and sell it today you would earn a total of 2,177 from holding International Business Machines or generate 10.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
International Business Machine vs. LOWES PANIES INC
Performance |
| Timeline |
| International Business |
| LOWES PANIES INC |
International Business and LOWES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with International Business and LOWES
The main advantage of trading using opposite International Business and LOWES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if International Business 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.| International Business vs. EPAM Systems | International Business vs. Infosys Ltd ADR | International Business vs. Cognizant Technology Solutions | International Business vs. FiscalNote Holdings |
| LOWES vs. National CineMedia | LOWES vs. Hf Foods Group | LOWES vs. Senmiao Technology | LOWES vs. NH Foods Ltd |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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