Correlation Between Intel and LOWES
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By analyzing existing cross correlation between Intel and LOWES INC 25, you can compare the effects of market volatilities on Intel 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 Intel with a short position of LOWES. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intel and LOWES.
Diversification Opportunities for Intel and LOWES
Excellent diversification
The 3 months correlation between Intel and LOWES is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Intel and LOWES INC 25 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LOWES INC 25 and Intel 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 Intel 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 25 has no effect on the direction of Intel i.e., Intel and LOWES go up and down completely randomly.
Pair Corralation between Intel and LOWES
Given the investment horizon of 90 days Intel is expected to generate 3.37 times more return on investment than LOWES. However, Intel is 3.37 times more volatile than LOWES INC 25. It trades about 0.11 of its potential returns per unit of risk. LOWES INC 25 is currently generating about -0.22 per unit of risk. If you would invest 2,252 in Intel on September 4, 2024 and sell it today you would earn a total of 141.00 from holding Intel or generate 6.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Intel vs. LOWES INC 25
Performance |
| Timeline |
| Intel |
| LOWES INC 25 |
Intel and LOWES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intel and LOWES
The main advantage of trading using opposite Intel and LOWES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intel 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.| Intel vs. NXP Semiconductors NV | Intel vs. Analog Devices | Intel vs. Monolithic Power Systems | Intel vs. ON Semiconductor |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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