Correlation Between Lululemon Athletica and Bluerock Homes
Can any of the company-specific risk be diversified away by investing in both Lululemon Athletica and Bluerock Homes at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Lululemon Athletica and Bluerock Homes into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lululemon Athletica and Bluerock Homes Trust, you can compare the effects of market volatilities on Lululemon Athletica and Bluerock Homes 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 Lululemon Athletica with a short position of Bluerock Homes. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lululemon Athletica and Bluerock Homes.
Diversification Opportunities for Lululemon Athletica and Bluerock Homes
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lululemon and Bluerock is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Lululemon Athletica and Bluerock Homes Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bluerock Homes Trust and Lululemon Athletica 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 Lululemon Athletica are associated (or correlated) with Bluerock Homes. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bluerock Homes Trust has no effect on the direction of Lululemon Athletica i.e., Lululemon Athletica and Bluerock Homes go up and down completely randomly.
Pair Corralation between Lululemon Athletica and Bluerock Homes
Given the investment horizon of 90 days Lululemon Athletica is expected to generate 1.05 times more return on investment than Bluerock Homes. However, Lululemon Athletica is 1.05 times more volatile than Bluerock Homes Trust. It trades about 0.04 of its potential returns per unit of risk. Bluerock Homes Trust is currently generating about -0.06 per unit of risk. If you would invest 31,786 in Lululemon Athletica on September 5, 2024 and sell it today you would earn a total of 2,280 from holding Lululemon Athletica or generate 7.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lululemon Athletica vs. Bluerock Homes Trust
Performance |
| Timeline |
| Lululemon Athletica |
| Bluerock Homes Trust |
Lululemon Athletica and Bluerock Homes Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lululemon Athletica and Bluerock Homes
The main advantage of trading using opposite Lululemon Athletica and Bluerock Homes positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lululemon Athletica position performs unexpectedly, Bluerock Homes 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 Bluerock Homes will offset losses from the drop in Bluerock Homes' long position.| Lululemon Athletica vs. VF Corporation | Lululemon Athletica vs. Levi Strauss Co | Lululemon Athletica vs. Under Armour A | Lululemon Athletica vs. Columbia Sportswear |
| Bluerock Homes vs. Nexpoint Residential Trust | Bluerock Homes vs. Clipper Realty | Bluerock Homes vs. Centerspace | Bluerock Homes vs. Equity Lifestyle Properties |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |