Correlation Between Intel and LOWES
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By analyzing existing cross correlation between Intel and LOWES INC 37, 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
Very good diversification
The 3 months correlation between Intel and LOWES is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Intel and LOWES INC 37 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LOWES INC 37 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 37 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 under-perform the LOWES. In addition to that, Intel is 3.33 times more volatile than LOWES INC 37. It trades about -0.11 of its total potential returns per unit of risk. LOWES INC 37 is currently generating about -0.1 per unit of volatility. If you would invest 7,865 in LOWES INC 37 on September 12, 2024 and sell it today you would lose (283.00) from holding LOWES INC 37 or give up 3.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.12% |
| Values | Daily Returns |
Intel vs. LOWES INC 37
Performance |
| Timeline |
| Intel |
| LOWES INC 37 |
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. NVIDIA | Intel vs. Taiwan Semiconductor Manufacturing | Intel vs. Micron Technology | Intel vs. Qualcomm Incorporated |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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